HKT-SS Unlocks $209M Selling Passive Network Stake

Edgen Stock

·Mar 31 2026, 02:45

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Key Takeaways

HKT-SS, a subsidiary of PCCW, has executed a strategic divestment, selling a minority stake in its passive network infrastructure business to an entity managed by private equity firm CM Capital. The transaction provides HKT-SS with a significant cash infusion while it retains majority control of the underlying asset.

HKT-SS sold a 9% stake in its subsidiary, Regional Link Telecom Services, for $209 million.
The buyer is Pegasus Investment BidCo Limited, a company controlled by CM Capital.
The deal injects approximately HKD 1.634 billion in cash into HKT-SS, which continues to hold a majority stake in the business.

HKT-SS Secures $209M from Minority Stake Sale

HKT Trust and HKT Limited (HKT-SS) has sold a 9% interest in its passive network business, Regional Link Telecom Services, for approximately $209 million (HKD 1.634 billion). The transaction was conducted through HKT-SS's indirect wholly-owned subsidiary, Apex Link Communications Holdings, which sold the stake to Pegasus Investment BidCo Limited, an investment vehicle managed by CM Capital.

Upon completion, Regional Link will remain an indirect subsidiary of HKT-SS and its parent company, PCCW. This structure allows HKT-SS to monetize a portion of its infrastructure assets while retaining majority ownership and operational control, ensuring the assets continue to support its core telecommunications services.

Divestment Unlocks Value From Infrastructure Assets

This sale represents a strategic move by HKT-SS to unlock capital from its extensive passive network infrastructure. The cash injection of HKD 1.634 billion provides the company with financial flexibility, which could be allocated toward reducing debt, funding investments in 5G and other core growth areas, or delivering returns to shareholders. By selling a non-controlling minority stake, HKT-SS crystallizes the market value of these assets without ceding long-term strategic control, a common tactic among modern telecommunication operators seeking to optimize their balance sheets.