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.
Wireless Federation » PCCW shelves the sale of HKT stake (Hong Kong)
PCCW shelves the sale of HKT stake (Hong Kong)
- October 13th, 2008
- 6:13 am
Want your say?
You must be logged in to post a comment.
