Hong Kong telecom group PCCW climbs most in 3 months after Lenovo deal

Pccw

15/06/2022 05:12

** Shares of telecommunication group PCCW Ltd  0008.HK 
climb 2.4% to HK$4.28, the biggest daily pct rise since March 16
if gains hold
    ** Stock on track to snap three straight sessions of
decline; second biggest gainer in Hang Seng Composite Index on
telecommunication stocks  .HSCIT  
    ** Chinese personal computers maker Lenovo Group  0992.HK 
is acquiring stakes worth $614 mln in two digital units of PCCW,
betting that a post-COVID recovery and hybrid work model will
drive IT services demand  urn:newsml:reuters.com:*:nL4N2Y20PO
    ** Lenovo will buy an 80% stake in Digital Era Enterprises
and a 20% stake in PCCW Network Services in a deal to be settled
$513.6 mln in cash and issue 86.4 mln new shares, or a 0.71%
stake, at HK$9.025 apiece
    ** Shares of Lenovo slip 2.6% to HK$7.37; second biggest pct
decliner in Hang Seng TECH Index  .HSTECH  and Hang Seng China
Enterprises Index  .HSCE 
    ** Hang Seng TECH Index  .HSTECH  surges 2.5%, Hang Seng
Composite Index tracking telecommunication stocks  .HSCIT 
climbs 1%
    ** Hang Seng China Enterprises Index  .HSCE  rises 2% and
Hang Seng Index  .HSI  gains 1.4% 
    ** As of last close, PCCW stock had gained 5.8% this year
while Lenovo shares had fallen 15.5% 

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))