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.

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.)