China Merchants Group Purchases 40% Stake in PCCW's Fiber Assets

China Merchants Group, a state-owned investor, has acquired a 40% stake in PCCW's fiber business for $870 million, aiming to invest in passive infrastructure assets while helping PCCW monetize its assets. The deal involves Fiber Link Global, enhancing HKT's service offerings and supporting expansion into new areas. Analysts suggest PCCW might use the proceeds for media business development or special dividends to shareholders, following previous asset sales like Viu to Canal+. This transaction aligns with PCCW's strategy of asset monetization and expansion into digital applications.