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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, 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. 

 

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