China Merchants Buys 40% of PCCW’s Fiber Unit for $870 Million

China Merchants Group Ltd. bought a 40% stake in the fiber assets of HKT Trust & HK Ltd., a unit of Hong Kong telecom group PCCW Ltd.

China Merchants’ investment arm will pay about $870 million for the stake in Regional Link Telecom Services Holdings Ltd., PCCW said in a filing Wednesday, confirming a Bloomberg News report in May. Proceeds from the transaction will be used for general corporate purposes, including debt repayment, PCCW said.

The sale “could be interpreted as a cash call” by PCCW for media business development, as there’s no urgency to raise funds, ...