February 7, 2017 / 3:16 AM / 3 years ago

HK's PCCW agrees to sell British broadband unit to CK Hutchison

A man descends in an escalator at the PCCW headquarters in Hong Kong December 20, 2013. REUTERS/Bobby Yip

HONG KONG (Reuters) - Hong Kong’s PCCW Ltd (0008.HK) has agreed to sell its British broadband internet business to compatriot CK Hutchison Holdings Ltd (0001.HK) for 300 million pounds ($374.25 million), to focus on its media and solutions divisions as well as its free TV service.

PCCW will sell UK Broadband Ltd to Hutchison 3G UK Ltd in a deal that it expects will generate a gain of HK$1.3 billion ($167.59 million), the telecommunications group said in a filing to Hong Kong’s stock exchange late on Monday.

CK Hutchison did not immediately respond to a request for comment.

UK Broadband sells broadband services under the “Relish” brand via fixed wireless networks. It holds licences for radio frequency spectrum.

PCCW's share price rose as much as 2.3 percent on Tuesday to HK$4.85, its highest since Oct. 6. CK Hutchsion stock gained 0.3 percent, while the benchmark index .HSI rose 0.03 percent.

Reporting by Donny Kwok; Editing by Christopher Cushing

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