Hong Kong lawmakers plan to hold a hearing next month on Richard Li's (李澤楷) decision to sell most of his stake in local phone operator PCCW Ltd (電訊盈科) to financier Francis Leung (梁伯韜), a legislator said yesterday.
Lawmaker Albert Cheng (鄭經翰) said he and his colleagues are concerned whether the transaction hurts minority shareholders' interests, whether Leung is backed by other investors who may create a telecommunications monopoly and if the deal was influenced by political pressure from China.
The announcement of the sale last Monday came after two foreign groups -- Australia's Macquarie Bank Ltd and US investment firm Texas Pacific Group and its Asia-focused unit Newbridge -- had bid for PCCW's core telecommunications and media assets.
Chinese state-owned phone operator China Network Communications Group (
Instead, Li, the younger son of Hong Kong's richest man Li Ka-shing (李嘉誠), said last Monday he plans to sell 23 percent of his 26 percent stake in PCCW to Leung for HK$9.16 billion (US$1.2 billion).
Li also offered to pay a special dividend to minority shareholders out of his own pocket that some believe was too small.
There is also speculation that Leung is backed by the elder Li.
Cheng said lawmakers plan to invite local financial officials and telecom regulators to attend the planned joint hearing by the legislature's information technology and financial affairs panels , which won't be held until at least Aug. 4.
He said there were no immediate plans to invite Li and Leung.
"The fundamental issue is who is behind this," Cheng said, noting that if Li Ka-shing is one of Leung's backers it could be a violation of telecom rules that ban ownership in multiple media assets.
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