Sunday, 11 April 2021

PCCW mulls IT unit sale for $1bn

by Harry Baldock, Total Telecom
Thursday 08 April 21

The Hong Kong-based telecoms company is reportedly working with financial advisors to evaluate a possible sale of its IT and data centres unit

Sources have told Bloomberg that PCCW could be looking to sell its IT and data centres unit for over $1 billion. According to reports, the company has received interest from various potential buyers, including private equity firms and other telecoms firms. The unit…

Sources have told Bloomberg that PCCW could be looking to sell its IT and data centres unit for over $1 billion. According to reports, the company has received interest from various potential buyers, including private equity firms and other telecoms firms.

The unit, PCCW Solutions, does business in Hong Kong, China, and Southeast Asia, with primary focusses on IT, cloud computing, the IoT, e-commerce, and data centres.

The sources suggest that PCCW Solutions has engaged a financial advisor to evaluate the unit and explore a potential sale.

This IT unit is not the first business under the PCCW brand to be exploring the possibility of a sale in recent years. Around a year ago, Hong Kong Telecom’s (HKT) international unit, PCCW Global, was reportedly being considered for sale. With a Tier 1 global internet backbone with 125 points of presence, this unit was similarly evaluated around $1 billion. 

Ultimately, however, such a deal never materialised, with HKT reiterating later in the year that PCCW Global remained an integral part of their business.

Part of the motivation behind these potential sales is likely tied to economic pressures that come as a result of the high tensions between the US and China, with Hong Kong itself all too often caught in the middle. Last year, for example, the US Federal Communications Commission (FCC) told the owners of the Pacific Light Cable Network that they could not light the portion of the submarine cable system that connected to Hong Kong, citing national security threats. 

With the global internet capacity market already a low-margin enterprise in which they must compete with the likes of Facebook and Google, rumours around the sale of PCCW Global could still be rekindled in 2021. 

 

Want to keep up to date with the latest developments in the world of telecoms? Subscriber to receive Total Telecom's daily newsletter here  

Also in the news:
Building Gigabit-Capable Broadband for Britain
KPN set to face €12.6bn takeover offer from EQT and Stonepeak
Citymesh private 5G network brings drones to Brussels Airport

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry