There has been a lot of conjecture made in recent days regarding former Hong Kong financier Francis LeungÆs acquisition of a 23% stake in PCCW. Leung is set to acquire the stake in PCCW held by Singapore-listed Pacific Century Regional Developments PCRD at HK$6 $0.77 per share, a total consideration of HK$9.2 billion $1.2 billion.
Furthermore, Richard Li through PCRD has agreed to lend HK$6.4 billion $820 million to Francis Leung to partially finance the acquisition. The funds will be lent with an annual interest rate of 6.5%.
In reality no cash will actually exchange hands for the time being, the $6.4 billion loan is nothing more than a legal...
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