HGC receives two takeover bids

Daily News

Hutchison Global Communications (HGC) has reportedly attracted two separate bids, and a third offer could be on the way.

A consortium of private equity firms – TPG Capital and MBK Partners – and investment manager I Squared Capital Advisors have submitted offers for the fixed line unit of Hutchison Telecommunications Hong Kong Holdings, Reutersreported, citing people familiar with the matter.

While rival operators HKBN and SmarTone had reportedly been considering placing their own bids, they have dropped out of the running due to concerns over valuations and the potential antitrust regulatory hurdles of an acquisition, the sources said.

But a third operator, CITIC Telecom, is still weighing up the pros and cons of submitting a bid and is expected to make a final decision by the end of the week.

According to the report, HGC is likely to fetch an enterprise valuation of $1.2 billion to $1.5 billion. A final decision on the sale could be reached as early as next week.

HGC offers wholesale telecoms services in worldwide owns and operates an extensive fiber network in Hong Kong that it uses to offer a range of fixed line services for enterprise and residential customers.

TPG and MBK jointly acquired Wharf T&T’s fixed line ISP business in Hong Kong in October.

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