PCCW hires UBS to sell stake in core telecoms unit

HONG KONG, June 27 (Reuters) - PCCW Ltd (0008.HK), the Hong Kong fixed-line carrier controlled by billionaire Richard Li, said it has hired UBS AG (UBSN.VX) to help it sell up to 45 percent equity interest in its media and telecoms unit.

In late May, PCCW announced a plan to fold its media and telecoms businesses into a separate firm -- called HKT Group Holdings Ltd -- and sell 45 percent of the new company to investors in its latest effort to sell core assets.

Private equity firms are expected to be among investors that might be interested in a stake in PCCW. The company said in a statement late on Friday that it hired UBS to help it find investors.

PCCW and Li, scion of renowned Hong Kong deal-maker Li Ka-shing, have been thwarted in recent years by shareholders and even the Chinese government -- through its control of shareholder China Netcom (0906.HK) -- in efforts to sell itself or its core assets.

Analysts noted several benefits of the plan, including slashing a crippling tax burden and speeding up the possible listing of its more valuable telecoms assets separately from its Pacific Century Premium Developments (0432.HK) property unit.

The company said in May it may use proceeds of the possible stake sale for investments in further growth initiatives in telecommunications, media and technology.

(Reporting by Joseph Chaney; Editing by Tony Munroe)