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Bloomberg
Billionaire Richard Li’s PCCW Ltd. plans to sell a HK$8.53 billion ($1.1 billion) stake in telecommunications unit HKT Trust & HKT Ltd., amassing cash as the Hong Kong tycoon shifts into greater media investments. The shares of both companies fell. PCCW will sell 840.7 million shares of Hong Kong’s largest phone company for HK$10.15 apiece, it said in a statement Monday. That’s about 8.4 percent less than the last closing price.
It’s the second sale in less than a week for the youngest son of Hong Kong’s richest man, who is seeking to build on PCCW’s media assets that include pay television, music streaming and movie distribution. PCCW relied on telecom services for about 82 percent of revenue last year. Selling down its HKT stake will mean it’s entitled to less in dividends from the company as it shifts businesses with potential for faster growth like television and movie content. “PCCW will repay its debts and continue to invest in its core media and solutions businesses,†analysts Gary Yu, Yang Lsiu and Ansel Lin said.