(Bloomberg) -- PCCW Ltd., a telecommunications, media and technology conglomerate controlled by billionaire Richard Li, is mulling a significant minority stake sale in its fiber business for about $1 billion, according to people familiar with the matter.

Most Read from Bloomberg

• Charlie Munger, Who Helped Buffett Build Berkshire, Dies at 99

• Musk’s Cybertruck Is Already a Production Nightmare for Tesla

• Hamas Releases 12 Hostages Despite Claims of Truce Violations

• Billions Wiped Out as Stock-Safety Trade on Wall Street Misfires

• Treasury Yields Slide as Fedspeak Fuels Pivot Bets: Markets Wrap

The Hong Kong-listed company is working with a financial adviser on the potential transaction, the people said, asking not to be identified because the matter is private. The asset has drawn interest from Chinese investors as well as Middle Eastern sovereign wealth funds, the people said.

The company could use the proceeds to reduce debt while boosting growth, according to the people. Considerations are ongoing and talks may not lead to any agreement, they said. A representative for PCCW declined to comment.

PCCW, which traces its roots to the Hong Kong Telephone Co. formed in 1925, holds interests in businesses including telecommunications, media, IT solutions, property development and investment, its website shows. Its shares rose as much as 2% on Friday. The stock has climbed about 13% this year, giving the firm a market value of roughly $4 billion.

The company has been selling stakes across some of its operations in recent years. In June, Canal+, the French broadcaster owned by billionaire Vincent Bollore’s Vivendi SE agreed to buy a significant minority stake in Viu, an over-the-top video service under PCCW, as part of a partnership between the two media groups.

In 2021, PCCW sold its data center business to DigitalBridge Group Inc., a digital infrastructure investment firm, for $750 million. A year later, the conglomerate divested stakes in PCCW Lenovo Technology Solutions and PCCW Network Services to Lenovo Group Ltd. for about $614 million.

(Updates PCCW share move in fourth paragraph.)

Most Read from Bloomberg Businessweek

• Chinese Car Companies Cracked North America by Going to Mexico

• Scientists and Farmers Race to Save the World’s Banana Supply

• MBA Alternative Augment Clinches $3.7 Million in New Funding

• How Elon Musk Spent Three Years Falling Down a Red-Pilled Rabbit Hole

• The Utah Jazz Enter Their Experimental Post-Cable Phase

?2023 Bloomberg L.P.