Hong Kong-based PCCW’s chairman Richard Li and the telecom firm’s second largest shareholder, the China Netcom Group, are planning to buy out other PCCW shareholders, taking advantage of low share prices.

Hong Kong-based PCCW’s chairman Richard Li and the telecom firm’s second largest shareholder, the China Netcom Group, are planning to buy out other PCCW shareholders, taking advantage of low share prices. Reportedly, the parties are expected to offer HK$4.2 per share with HSBC arranging financing for the deal.

The price represents a 53 per cent premium to PCCW’s last closing price. Trading in PCCW shares was suspended on October 14, 2008 as its stock plunged to a nine-year low of HK$2.45 after the operator halted the sale of stake in its newly formed unit, HKT Group Holdings, amidst market upheavals.

PCCW was earlier planning to sell a 45 per cent stake in HKT, which holds its fixed line, broadband and television assets, to private equity bidders.