The Abu Dhabi Investment Authority (ADIA) is reportedly contemplating making a bid to acquire a portion of PCCW’s fiber business. According to Bloomberg, this potential move would enable the oil-rich emirate to expand its presence in Greater China.
The agency cited sources, who preferred to remain unidentified due to the confidential nature of the matter, revealed that ADIA is currently engaged in discussions to acquire a significant minority stake in PCCW’s fiber assets for approximately $1 billion. However, it should be noted that these talks are still ongoing, and there is a possibility that the involved parties may decide against proceeding with the transaction. Additionally, there is a chance that other interested parties may enter the bidding process. When approached for comments, representatives from ADIA and PCCW chose not to provide any statements.
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Stake sale
According to the report, PCCW, a conglomerate in the telecommunications, media, and technology sectors controlled by billionaire Richard Li, has been exploring the possibility of selling a significant minority stake in its fiber business for approximately $1 billion. People familiar with the matter have indicated that Chinese investors and Middle Eastern funds have shown interest in these assets.
PCCW, with its origins tracing back to the establishment of Hong Kong Telephone in 1925, has diversified interests across various industries, including telecommunications, media, IT solutions, property development, and investment, as stated on its website. The company has been divesting stakes in several of its operations, such as its over-the-top video service Viu, data center business, and IT services.
This year, PCCW’s shares have experienced a rise of approximately 13 percent, resulting in a market value for the company of around $3.9 billion.
Notable investments
Gulf states’ funds, including ADIA, have made substantial investments amounting to tens of billions of dollars in order to diversify their portfolios. In 2023, the ADIA made a notable move by acquiring a significant stake in Adventage Austria’s INNIO. This builds upon previous ventures carried out by ADIA, which include investments in the German rail car rental company VTG AG and Emerson Electric Co.
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