Richard Li, CNCG make buy-out offer for PCCW

Billionaire investor Richard Li, in conjunction with China Network Communications Group (CNCG), has offered to buy-out PCCW for up to HK$14.9 billion ($1.9 billion).

Under the proposal, released to the Hong Kong stock exchange today, PCCW would be made private.

Together, Li and CNCG own 48% of PCCW, and are offering $0.54 for each of the remaining 3.55 billion shares.

Li's Pacific Century Regional Developments (PCRD) will foot around 74% of the bill for the long-rumoured buyout, with CNCG paying the remainder. PCRD would own a 67% stake in PCCW, and CNCG would own 33%.

PCCW stock was trading at $0.37 before it was suspended pending the announcement.

CNCG is the parent company of China Netcom.