Richard Li, PCCW chairman, has taken the extraordinary step of providing the buyer of a stake in his company with the majority of the funding.
Mr Li on Tuesday said Pacific Century Regional Developments, PCCW’s largest shareholder and which is selling its entire 23 per cent stake to Francis Leung for HK$9.2bn ($1.2bn), has agreed to fund 70 per cent of the deal.
Mr Leung will only have to pay PCRD, controlled by Mr Li, HK$2.7bn by this December as a first payment. The 70 per cent, plus interest, can be paid to the company in tranches by June 2008. The unusual arrangement will surprise investment bankers.
Meanwhile, Macquarie Bank and TPG Newbridge, the Asia affiliate of the US buy-out group, are still pursuing PCCW’s telecommunications assets, in spite of being bypassed by this week’s deal in which Mr Leung became the company’s new controlling shareholder.
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