PCCW Ltd. will sell its data centre business to REIT DigitalBridge Group Inc for $750 million.
PCCW expects the deal to result in gains of at least $180 million and allow it to streamline its core telecom service businesses. With the disposal PCCW can also avoid the heavy investments typical of most data-centre operations, which would enable it to preserve capital and resources for other businesses, the company said.
The NYSE-listed DigitalBridge Group is a global leader in digital infrastructure, investing in, building, and operating the networks that enable connectivity and power the digital economy.
PCCW said it plans to use proceeds from the sale for potential investments in financial services, share buyback programs, as well as debt repayment and other general corporate purposes. Earlier, W.Media had reported that PCCW and DigitalBridge Group will finish this transaction within this month.