Intel increases stake in PCCW

The US chipmaker may boost its shareholding in the telecommunications group via a $100 million Secured Redeemable Exchanageable Bond (SREB).

Under the lead management of DBS Bank, Intel Capital, the strategic investment arm of Intel Corp, has purchased an exchangeable into PCCW that stands to increase its stake by a further 1.4%.

As the bonds were issued by the Singapore-listed parent company Pacific Century Regional Developments PRCD, the deal will not increase the debt load of PCCW-HKT into which it is exchangeable. This is particularly important for the group ahead of its March 31 year-end, as it is trying to bring debt to EBITDA below 3.5 times - the trigger on its loan covenants allowing it to upstream more dividends from the cash cow PCCW-HKT to the parent PCCW,...

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