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PCCW shareholders fail to deduce the pricing for ownership deal (Hong Kong)

  • October 30th, 2008
  • 7:03 am

PCCW Group Chairman Richard Li and Hong Kong telco’s largest overseas shareholder China Unicom have failed to reach a common point over the pricing of a proposed joint buyout, media reported. China Unicom had deemed an initial offer of HKD4 (USD0.52) a share to take PCCW private, while minority shareholders, whilst minority shareholders refuses to accept less than HKD5 a share.

PCCW when cancelled a plan to vend off 45% of its core assets via a newly formed unit, dubbed HKT Group Holdings, shares drop to their lowest level since 1999, HKD2.45. Good news turn up with the proclaimation of PCCW securing the second fixed line licence in Oman, through a local joint venture.

Netcom intends to take over PCCW-Report (Hong Kong)

  • October 15th, 2008
  • 6:43 am

PCCW’s second largest shareholder China Netcom is planning to buyout other shareholders in lieu of low share prices reportedly. Further, the parties are expected to put forward a proposal in an emergency board meeting while HSBC would arrange financing for the deal. According to an insider, “The sense of the board is that they will be presented with a take-private transaction led by the two lead shareholders and that is already creating controversy at the board level.” Some members believes that a takeover deal have to be offered at about HK$6 a share but wondered if PCCW’s Chairman Richard Li and Netcom would bid that high. The stock sinks as low as to HK$2.45 which is the lowest level since 1999, after PCCW ends sale of stake in its new HKT unit.

PCCW shelves the sale of HKT stake (Hong Kong)

  • October 13th, 2008
  • 6:13 am

PCCW has ended the sale of a stake in its new HKT unit due to economic crisis in the market. The auction is assessed to be worth more than $3 billion which had drawn several private equity bidders. This is the second major Asian deal which had been pulled in the last week due to the global market plunge. China’s Huawei Technologies has pulled its auction for a stake in its mobile handset division, which was said to be worth more than $3.5 billion and also attracted private equity giants. According to the company statement, “The recent market downturn has significantly impacted the offers received . ” Earlier PCCW said that it planned to fold its core media and telecoms businesses into a separate firm called HKT and sell 45 percent of the new company. HKT consists of three PCCW businesses: information technology, telecommunications, and media. PCCW is expecting to spin off HKT into a publicly traded division. They are also hoping to get a minority stake investor in the division before it went public. 20% of PCCW is owned by China Netcom.

PCCW invites bid for a 45% stake in its HKT Group (Hong Kong)

  • October 7th, 2008
  • 12:10 pm

PCCW (Hong Kong-based full-service telecoms group) has invited bidders for a 45% stake in its newly-created HKT Group Holdings unit which expected to receive offers as much as a third lower than its original reserve price because of the worldwide banking crisis and its own falling share price, media reported. Previusly six bidders have been shortlisted for a stake in the new division comprising PCCW’s core telecoms, media and IT assets, originally estimated to be worth up to USD2.5 billion. Formal bids are anticipated by the end of this week.