Billionaire Li Ka Shing's Hutchison Telecommunications Hong Kong said it agreed to sell its fixed-line telecoms business to American private equity firm I Squared Capital for HK$14.5 billion.
Hutchison Global Communications runs an extensive fibre-optic network that connects to over 14,000 buildings. It is also a major provider of WiFi services to Hong Kong.
Hutchison expects to generate approximately HK$5.8 billion in profit through the sale, according to a filing to the Hong Kong stock exchange, which will allow it to invest more into its mobile services business.
Gautam Bhandari, partner at I Squared Capital, said: “With I Squared Capital’s investment, HGC will continue to provide the same quality of service that mobile telecommunication providers, corporate and residential customers have come to expect. Fresh capital will also enable the company to develop new solutions to meet the ever-increasing demand for high-speed information infrastructure throughout the region and beyond.”