PCCW will establish DC HoldCo as the holding company of the DC Group, and it will hold all shares in Powerbase HK and DC Malaysia, and sell it to DigitalBridge Group, Inc.
News on July 26 news, Hong Kong PCCW officially announced that it will sell the company's data center business to DigitalBridge Group Inc for a price of US$750 million.
According to disclosures, Powerbase HK and DC Malaysia are indirect wholly-owned subsidiaries of PCCW engaging in the business of providing data center services to customers in Hong Kong and Malaysia. PCCW will establish DC HoldCo as the holding company of the DC Group, holding all shares in Powerbase HK and DC Malaysia. The total assets of the DC Group are approximately US$258.3 million.
After the transaction is completed, DC Group will be a subsidiary of DigitalBridge Group, Inc.
Regarding the sale of the data center business, PCCW has the following statements:
Streamline business to focus on technology, intellectual property development and services. The neutral operation server hosting service is a different business from our Hong Kong telecommunications, media and enterprise solutions business. The proposed divestiture of the data center business will enable the company to better concentrate and strengthen its core services and products, and create more value for customers and shareholders.
Realize the value of data center business. It used to operate as part of the company and did not separately disclose the details of the financial, operation and growth plans, and the value of the data center business has not been fully recognized by investors. Through this transaction with an independent third party, the company can realize the value of the data center business and further release shareholder value.
Reserve the flexibility of capital allocation for the company. The future growth and expansion of the data center business will require substantial capital expenditures. Through the transaction, the company will have the flexibility to allocate capital and resources more effectively to drive growth.
In addition, based on the estimated net asset value of the DC Group at the time of completion and the directly attributable costs incurred for the transaction and fulfillment of related obligations, PCCW expects to confirm the income is no less than US$180 million (HK$1.404 billion) from the transaction.
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