You are using an older browser version. Please use a supported version for the best MSN experience.

Hutchison sells Hong Kong fixed-line business to I Squared for $1.9 billion

LiveMint logoLiveMint 30-07-2017 Elzio Barreto

Hong Kong: Hutchison Telecommunications Hong Kong Holdings Ltd said on Sunday it agreed to sell its fixed-line telecoms business to I Squared Capital for about $1.9 billion, raising funds to invest into mobile phone services and for working capital.

The company is selling Hutchison Global Communications (HGC), which provides fixed-line phone services as well as Wifi all around Hong Kong, for HK$14.5 billion ($1.86 billion) in cash to a unit of I Squared Capital, according to a filing to the Hong Kong stock exchange. The value may be adjusted later based on debt, cash levels and other financial data of the business at the time of the closing.

Hutchison Telecommunications said it expected to make a profit of HK$5.8 billion on the sale of HGC.

Hutchison Telecommunications’ shares have risen nearly 23% since 16 May, when the company acknowledged media reports about a potential sale of the fixed-line business.

Hutchison Telecommunications drew initial interest from a series of companies, including HKBN Ltd and SmarTone Telecommunications Holdings Ltd. The list of bidders narrowed down to two in the latter stages, a consortium of private equity firms TPG Capital Management LP and MBK Partners, and I Squared Capital, sources previously told Reuters.

The deal is subject to shareholders’ approval and is expected to close in October, Hutchison Telecommunications said in the filing.

CK Hutchison Holdings Ltd, which owns 66.1% of Hutchison Telecommunications, will vote all its shares in favour of the sale during an as-yet unscheduled extraordinary shareholders meeting to vote on the deal.

I Squared, which invests in global infrastructure in energy, utilities and transport, is among potential buyers for Equis Energy, Asia’s largest independent renewable energy producer, in a deal valued at up to $5 billion.

Hutchison Telecommunications said it appointed Deutsche Bank and Goldman Sachs as financial advisers on the transaction.

More From LiveMint

image beaconimage beaconimage beacon