Pacific Century CyberWorks: The Road to Privatisation
In November 2008, Pacific Century CyberWorks ("PCCW"), a telecommunications giant in Hong Kong, became the subject of a privatization proposal. The proposed buyback of minority shares was offered by PCCW's substantial shareholders. Despite allegations of vote rigging faced by the joint offerers, the privatization proposal received the approval of stockholders in February 2009. This is a finance and corporate restructuring case that employs the discount cash flow model to ascertain the fair value of PCCW. The case also focuses on issues of corporate governance when a publicly traded company decides to go private.