(Associated Press via NewsEdge) Richard Li, whose father is Hong Kong's most prominent business tycoon, announced the sale of a 23% stake in leading local fixed-line operator PCCW, aborting his failed attempt to transform a traditional phone company into a regional Internet powerhouse.
Li also dashed hopes of a possible sale of PCCW's assets to Australia's Macquarie Bank or US investment firm Texas Pacific Group and its Asia-focused unit, Newbridge, amid opposition by a Chinese shareholder.
'"&brkbar; circumstances dictate that we can't have an asset sale,' Li said.
Li said that he would sell his 23% stake in PCCW to financier Francis Leung.
Leung said he had signed an agreement to acquire the 22.7% stake in PCCW held by Singapore-listed Pacific Century Regional Developments (PCRD) at HK$6 ($0.77) a share for a total of HK$9.16 billion ($1.2 billion).
Pacific Century Regional Developments is 75% held by Pacific Century Group Holdings, which is wholly owned by Li.
Li, who will keep a privately held 3% stake, said he plans to step down as the company's chairman when PCRD receives its first 30% down payment, which he said he expects to be no later than November 30.
The deal marks the official end to one of Hong Kong's most closely watched business stories.
Macquarie, Texas Pacific Group and Newbridge had expressed interest in its core assets, but state-owned China Netcom, which owns 20% of PCCW, said it was concerned about telecom infrastructure on Chinese soil falling into foreign hands.
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