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PCCW: Transferring Now TV to HKT to Amplify Synergy Effects; May Spin-off & List OTT Biz on Right Value
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2020/08/06 18:24
PCCW (00008.HK) announced that PCCW Interactive Media, a subsidiary of the Company, proposed to transfer to HKT-SS (06823.HK) of the entire issued share capital of PCCW Media, an operator of "Now TV", for a Consideration of US$250 million, so as to enhance and maximize the prospects of the Group’s "Now TV" business.

Group Chief Financial Officer Hui Hon Hing, Susanna revealed at the results conference that the transaction was expected to complete at the end of the year, and opined it could amplify synergy effects. Yet, she underscored the company will not consider to transfer other media businesses because the company's OTT business is growing not only in local market but also overseas.

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The OTT segment will remain within PCCW instead, for which the company will scout strategic opportunities, including but not limited to potential listing or additional investment through strategic partnership.

With the listing destination undecided, Hui emphasized the company has to identify appropriate valuation.
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