PCCW offers USD250 million for Sunday’s assets

4 Oct 2006

Following an announcement made late last month, Hong Kong’s largest fixed line operator PCCW has offered to buy the network assets and business operations of its 79%-owned mobile unit Sunday Communications for HKD1.94 billion (USD250 million). Sunday said in a statement that PCCW has offered to pay HKD401.5 million in cash and will offer a promissory note on the remaining HKD1.54 billion; it also noted that it owes PCCW HKD1.4 billion. If the deal is improved at a shareholder’s meeting next month, Sunday will withdraw its stock exchange listing and its shareholders will receive a payout of HKD0.65 a share. Sunday has appointed ING Bank to advise it on the deal.