HKT sells fixed network stake for $870M

Hong Kong's biggest telco partners with state-owned China Merchants Bank, anticipating growth from digital transformation and Greater Bay Area integration.

Robert Clark, Contributing Editor, Special to Light Reading

June 27, 2024

2 Min Read
Hong Kong skyline
Hong Kong, where HKT is based, as seen at night.(Source: Wikipedia via Creative Commons)

HKT has agreed to sell 40% of its wireline network assets for $870 million to an investment firm backed by a Chinese state-owned bank.

The HKEx-listed telco and parent PCCW announced Wednesday the sale to CM Capital, a 50:50 joint venture between China Merchants Bank and Singapore investment firm GLP Holdings.

The transaction would enable HKT to "unlock value in its extensive passive network business" and introduce a partner to share future expansion costs, the companies said in a stock exchange filing.

Proceeds from the sale would be used for "general corporate purposes including the repayment of debt," the statement said.

The sale would also provide more resources for broadening both its consumer and enterprise services, and in particular boost its "digital lifestyle" offerings.

HKT said the new partners saw opportunities for geographic and service expansion through new Hong Kong residential developments, enterprise digital transformation and the city's increasing integration with neighboring cities in the Greater Bay Area.

Under the terms agreed, CM Capital will acquire the stake in its passive network business and lease it back to the telco. The business includes the operation of HKT's copper and fiber fixed-line access networks and carrying out future network rollouts.


HKT will pay CM Capital a minimum annual service fee of 1.75 billion HK dollars (US$224 million) for access to the network.

The two companies will aim to finalize the deal by June 2025, conditional upon a reorganization of the fixed-line network business. The arrangement will remain in force for an initial term of 15 years, with automatic extensions for periods of five years.

The sale, which was first reported late last year, is the latest in a number of asset sell-offs by HKT and PCCW.

PCCW sold off a stake in its successful Asian streaming service Viu to French media firm Canal+ for up to $300 million in June 2023.

It disposed of its regional data center business to Digital Bridge in 2021, and sold a controlling stake in its IT services business to Chinese firm Lenovo for $613 million in 2022.

PCCW's stock on the Hong Kong exchange fell 0.77% Thursday. HKT rose 0.11%.

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About the Author(s)

Robert Clark

Contributing Editor, Special to Light Reading

Robert Clark is an independent technology editor and researcher based in Hong Kong. In addition to contributing to Light Reading, he also has his own blog,  Electric Speech ( 

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