Friday, August 22, 2008

N.E. firms in running for up to $2.5B stake of PCCW

By Mass High Tech Staff

Rhode Island private equity firm Providence Equity Partners is among the short list of firms vying for a 45 percent stake in the new telecom unit of Hong Kong’s PCCW, a deal that could be worth $2.5 billion, according to published reports.

Other firms on the shortlist include TPG Capital of Texas, Australian banking giant Macquarie and Hong Long-based MBK Partners, a recent report from Reuters stated. While Boston-based Bain Capital was said to be in the running, Reuters said that firm’s participation remains “unclear.”

Earlier this year, PCCW, Hong Kong’s major fixed-line carrier, announced plans to combine its media and telecommunications divisions into a single firm (called HTK) and sell 45 percent stake in the company.

PCCW’s large customer base in the growing Hong Kong telecommunications market makes it an attractive investment, and many firms across the world have expressed interest.

Founded in 1989, Providence Equity Partners focuses on media, entertainment, communications and information investments. The company has more than $21 billion under management and targets investments between $250 million to $2.5 billion. Among the company’s investment portfolio is movie giant Metro-Goldwyn-Mayer, sports conglomerate YES Network and U.K. mobile phone sales channel MobileServ.