A consortium of private equity firms including TPG Capital Management and MBK Partners, as well as Hong Kong operator HKBN are preparing separate bids for Hutchison's fixed-line phone unit, Reuters reports, citing unnamed sources with direct knowledge of the matter. Fixed line operator Hutchison Global Communications is expected to be valued at USD 1.5 billion, five sources said. Interested parties can submit their bids for the unit by end-June, the sources added.
Hutchison Global Communications (HGC), a subsidiary of Hutchison Telecommunications Hong Kong, provides fixed-line services in Hong Kong and overseas for corporate and residential users. According to two of the sources, the deal could be valued at as much as 12 times the company's EBITDA of USD 161 million in 2016, pushing the acquisition cost to as much as USD 1.9 billion.
Representatives for HGC, HKBN, TPG and MBK declined to comment on the potential transaction.
