PCCW unit to sell 40% stake in Regional Link Telecom Services for $870 mln (updated)

Pccw

26/06/2024 01:50

(Adds background and details in paragraphs 2-7)
       June 26 (Reuters) - Investment holding company PCCW
 0008.HK  said on Wednesday it would sell a 40% stake in
Regional Link Telecom Services through a unit for $870 million
to CM Capital.
    PCCW unit HKT Trust And HKT  6823.HK  will also enter into a
partnership with CM Capital under the deal to grow its network
business and share capital expenditure for future expansion.
    Regional Link Telecom Services, a wholly-owned subsidiary of
HKT, owns Passive Netco, which supplies fibre connection
services in Hong Kong and the Greater Bay Areas.
    The deal comes at a time when organisations are increasing
new technology adoptions to capitalise on artificial
intelligence boom.
    The partnership will help HKT to expand its passive
infrastructure business to support new service offerings and
reach new geographic areas, PCCW said.
    Under the deal, Passive Netco will help HKT to provide
copper and fibre-based connection services to users.
    

 (Reporting by John Biju in Bengaluru; Editing by Shinjini
Ganguli and Subhranshu Sahu)
 ((John.Biju@thomsonreuters.com;))