Magic Circle law firm Clifford Chance has advised China Merchants Capital (CMC) on its $870 million investment for a 40 percent stake in the fibre assets of HKT Trust & HK, a subsidiary of Hong Kong telecom group PCCW.

The investment will be made through CMC’s acquisition of shares in Regional Link Telecom Services Holdings Ltd, according to a filing by PCCW. The Hong Kong-based telecom group said proceeds from the transaction would be used for general corporate purposes, including debt repayment.

PCCW, controlled by Hong Kong tycoon Richard Li, has been divesting various assets in recent years. CMC, an alternative investment and asset management platform jointly owned by China Merchants Group and GLP, manages nearly 70 funds in both yuan and foreign currencies.

The Clifford Chance team advising CMC was led by partners Julie Fu, Liyong Xing, Edith Leung, and Yong Bai.