CVC completes $657m purchase of HKBN

Dylan Bushell-Embling
31 May 2012
00:00

Private equity firm CVC Capital Partners has paid HK$5.1 billion ($656.8 billion) to acquire Hong Kong Broadband Network (HKBN) from former parent City Telecom.

The deal, first announced last month, gives CVC ownership of a fiber network passing around 2 million homes and commercial buildings.

CVC will also inherit HBKN's 1.3 million broadband, local telephony, IDD and IPTV subscriptions, and 3,000 employees.

CVC revealed that HKBN will continue to be operated by its current management team, including CEO William Yeung. Top managers will also be invited to co-invest with CVC, becoming owner-managers.

Seller City Telecom will be making a solid profit on the reported $400 million the company spent to deploy its FTTH network.

With these fixed telecom assets divested, City Telecom is expected to now concentrate on its multimedia business.

The company is in the process of applying for a terrestrial free-to-air broadcasting license, and the Hong Kong Executive Council is expected to decide whether to grant this license soon.

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.