Hutchison sells Hong Kong fixed business for HKD 14.5 billion

News General Hong Kong 31 JUL 2017
Hutchison sells Hong Kong fixed business for HKD 14.5 billion

CK Hutchison has agreed to sell its fixed network in Hong Kong in order to focus more on mobile services. The investment group I Squared Capital will buy Hutchison Global Communications (HGC) from Hutchison Telecommunications Hong Kong Holdings (HTHKH) for HKD 14.5 billion (EUR 1.58 billion). The transaction is expected to close by October.

HGC operates a 1.4 mln km fibre network and over 25,000 Wi-Fi hotspots in Hong Kong, as well as owning four links to the Chinese mainland. Its recurring revenues and long-term contracts were considered attractive to the infrastructure investors. 

Hutchison said its fixed activities were long undervalued, and shareholders will be able to realise the value of the fixed business through the sale. The proceeds from the sale will be re-invested in the mobile business. 

The sale still requires approval from HTHKH shareholders. Hutchison, with 66 percent of the company, has agreed to back the sale. Hutchison also agreed to allow the new owner to use its brand for up to 12 months after closing and continue to provide marketing services to the fixed operator. 

Categories:

General

Companies:

Hutchison Telecommunications,  Hutchison Global Communications

Countries:

Hong Kong

Tags:

Voice services, Wireline, M&A buyouts & divestments

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