Li Ka-Shing to Buy U.K. Broadband Assets From Younger Sonby
Billionaire Li Ka-shing agreed to buy a telecommunications business in the U.K. from his younger son for 300 million pounds ($374 million) in a shuffling of assets within Hong Kong’s richest family.
Through CK Hutchison Holdings Ltd.’s Three U.K., Li will pay his son’s PCCW Ltd. 250 million pounds in cash and 50 million pounds in credit vouchers for U.K. Broadband, which holds spectrum and wireless network assets, according to a filing in Hong Kong on Monday. PCCW, controlled by billionaire Richard Li, expects to post a gain of about HK$1.3 billion ($168 million) from the deal, it said.
Though transactions between the father and son are rare, they occasionally happen as in the case of when Richard Li’s PCCW agreed to buy satellite assets from his father in 2001.
PCCW may spend the proceeds investing in his media business or for general corporate purposes, it said. U.K. Broadband says it’s the biggest commercial holder of national radio spectrum suitable for 4G mobile services in the U.K.
PCCW climbed 2.1 percent to a four-month high of HK$4.84 in Hong Kong on Tuesday, while CK Hutchison slipped 0.1 percent to HK$91.60.