CyberWorks Says Won't Sell Out of Telstra Ventures, Cyberport
By Kenneth Wong and Cathy Chan
Hong Kong, April 5 (Bloomberg) -- Pacific Century CyberWorks Ltd., Hong Kong's biggest phone company, said it won't sell its three joint ventures with Australia's Telstra Corp.
The South China Morning Post today reported that analysts expect the company to sell some of its wireless and connectivity businesses with Telstra, or part of its stake in the Cyberport, a high-tech property development in Western Hong Kong Island.
``PCCW has no intention to reduce its proportionate stake in these ventures,'' Alex Arena, deputy chairman of CyberWorks' executive committee, said in a statement. It has a regional mobile venture with Telstra in which CyberWorks owns 40 percent, Reach, a 50-50 undersea cable venture, and an Internet data center company.
The company said it ``categorically rejects'' any suggestion it may sell out of the Cyberport project.
CyberWorks wrote off $22 billion of goodwill from its acquisition of Cable & Wireless HKT last August. The company estimates it has to pay net interest of $490 million this year, fueling speculation it may sell assets to help pare debt.
Earlier this week, CyberWorks Deputy Chairman Francis Yuen said the company's portfolio of non-core assets can be turned into up to $1 billion cash ``within a relatively short notice.''
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