Hong Kong fixed-line operator PCCW has floated a proposal, wherein its shareholders- China Netcom and Pacific Century Regional Development Ltd (PCRD) will buy out its minority shareholders for $2.06 billion or HK$4.20 per PCCW share, representing 53 percent premium to PCCW’s last close before trading was suspended Oct. 14, as the company looks to take it private.

Owned by billionaire Richard Li and his Singapore-listed holding company PCRD, they control 28 percent of PCCW, while China Unicom is the company’s second-largest shareholder with a 19.9 per cent stake.

As a part of the transaction, PCRD will pay HK$11.1 billion, or 74 percent of the costs of taking the firm private, and the remaining bill of HK$3.8 billion, or nearly 26 percent of the total cost will be paid up by China Netcom, said the company.

The buyout plan will fail to proceed if holders of 10 percent of the shares owned by Li and China Network decline the proposal.

The deal marks the third time in two years that PCCW, whose shares have performed poorly, had attempted to sell its core telecom assets.