Hutchison Telecom sells fixed line business to investment group for £1.4 billion
I Squared Capital, an independent global infrastructure investment manager based in New York, has signed an agreement to acquire 100% interest in Hutchison Global Communications (HGC) from Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH).
The deal, which is about HKD 14.5 billion (£1.4bn), is expected to close by October, and will be carried out via I Squared Capital’s ISQ Global Infrastructure Fund II.
HGC is a Hong Kong-based fixed line service provider to fixed and mobile carriers, OTT service providers, corporate and business, residential and data centres in Hong Kong and across the world. The company’s 1.4-million-kilometre fibre network connects to over 14,200 buildings and is also one of the country’s largest-scale Wi-Fi service providers with over 25,000 Wi-Fi hot spots. It extends its global reach into different continents via its multiple submarine and terrestrial cable systems.
Commenting on the deal, Gautam Bhandari, Partner at I Squared Capital, said that the company will help HGC to continue to provide the same quality of service that mobile telecommunication providers, corporate and residential customers have come to expect.
Elsewhere, voice and data network communications provider Windstream confirmed the close of its acquisition of New York-based Broadview Networks Holdings. The deal, worth $227.5 million in an all-cash deal, was first announced in April.
Windstream expects to realise approximately $30 million in annual operating synergies in a two years span. The transaction also will improve the company’s balance sheet by reducing leverage through the realisation of synergies and will be accretive to free cash flow in the first year.
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