HONG KONG (Reuters) - Singapore's Temasek Holdings plans to join
MBK Partners in a bid to buy a 45 per cent stake in PCCW Ltd's
(0008.HK: Quote,
Profile,
Research,
Stock Buzz) media
and telecoms unit HKT Group Holdings, the South China Morning Post
reported on Monday.
PCCW, the Hong Kong phone company controlled by billionaire
Richard Li, said last month it expects to shortlist bidders for its
newly formed HKT Group within a month, in a deal that could fetch
more than $2.5 billion.
Sovereign wealth fund Temasek and South Korean private equity
firm MBK declined to comment on the matter, the article said,
citing unnamed sources.
PCCW had announced plans in May to fold its core media and
telecoms businesses into the new unit and sell 45 percent.
Reuters reported last month that the Blackstone Group (BX.N:
Quote,
Profile,
Research,
Stock Buzz) and
Providence Equity Partners were among the private equity firms
pursuing a stake in HKT. Sources also told Reuters TPG Capital
TPG.UL and Australia's Macquarie Group (MQG.AX: Quote,
Profile,
Research,
Stock Buzz) are
pursuing a bid.
The South China Morning Post reported on Monday that the tie-up
between MBK and Temasek comes as other interested parties begin
sounding out partnership possibilities.
The article said a bid by state-controlled SingTel (STEL.SI:
Quote,
Profile,
Research,
Stock Buzz) in
2000 for a controlling stake in what became HKT's parent PCCW
caused alarm in Hong Kong and Beijing. Li stepped in soon
afterwards with a winning bid.
The newspaper said that while PCCW had indicated that it wanted
sole expressions of interest in the first round of the transaction
last month, it is widely expected that funds will form pairs or
larger consortiums once notified that they have made it on to the
shortlist for the second round.
That had been expected last week but was pushed back to the next
few days as PCCW moves ahead slowly with the transaction, the
article said.