Chunghwa not in running for PCCW stake

2 Sep 2008

Taiwanese telco Chunghwa Telecom has denied press reports that it is looking to take a minority stake in a newly spun-off unit of Hong Kong’s fomer fixed line monopoly PCCW. In late May 2008 PCCW announced a plan to spin off its core telecoms, media and information technology operations into a newly formed company, HKT Group Holdings, a 45% stake in which would then be sold to investors. Since then it has been reported that six private equity bidders have been shortlisted for an auction to be conducted by UBS later this year, expected to raise up to USD2.5 billion: Bain Capital, advised by Morgan Stanley; Carlyle Group, advised by Deutsche Bank; South Korea’s MBK Partners, advised by Lehman Brothers; TPG, advised by JPMorgan; Providence Equity Partners, advised by Citigroup; and Australia’s Macquarie Group, advising itself.

Hong Kong, Chunghwa Telecom, HKT (incl. CSL), PCCW Group