Investment vehicle DigitalBridge Group, Inc. (NYSE: DBRG) is said to be in conversations with PCCW (HKG: 0008) to acquire the Hong Kong ICT’s data centre hard assets.

According to sources, PCCW’s data centre business could be valued at US$600 million, Bloomberg reported. The figure is below early reports that placed the assets’ value at $1 billion.

The two businesses are said to still be in negotiations to finalise the terms of a potential deal, with a formal announcement potentially being released as early as the end of July.

However, the people familiar with the matter have also cautioned that an announcement can be delayed, and the negotiations can still fall apart altogether.

Shares of PCCW were up 0.74% as the trading day comes to a close in Hong Kong, with the business’ market capitalisation standing at HKD$31.54 billion (US$4.05 billion).

News on PCCW’s intention to sells its data centre arm first emerged in April. The conglomerate controlled by billionaire Richard Li, operates even data centre locations in Hong Kong, one in mainland China, and one in Malaysia.

According to people familiar with the matter, DigitalBridge came top in the auction of the assets that saw other telecom operators and private equity firms bid for the portfolio.

DigitalBridge, recently rebranded and combined the Digital Colony and Colony Capital brands, manages today $32 billion in assets within digital infrastructure, including towers, data centres, fibre, small cells, and edge infrastructure.

The group, which is structured as a REIT, is scheduled to release its second-quarter 2021 financial results before the market opens on Thursday, August 5, 2021.

The company has recently also closed two securitised financing note issuances totalling $500 million and launched the formation EdgePoint Infrastructure, a wireless towers platform focused on the high growth markets of Southeast Asia.

To date, EdgePoint has secured over 10,000 sites across Indonesia and Malaysia and is evaluating additional growth opportunities in markets across the Asia-Pacific region.