Canada Pension Plan Investment Board buys 17% stake in HKBN

13 Mar 2015

Canada Pension Plan Investment Board (CPPIB) disclosed yesterday that it has acquired an approximate 17% ownership stake in Hong Kong’s second-largest residential broadband internet provider HKBN by investing HKD1.551 billion (USD200 million) in HKBN’s initial public offering (IPO), buying 172.38 million ordinary shares at HKD9 per share.

HKBN was listed on the Hong Kong stock market this week following a USD748 million IPO, via which private equity firm CVC Capital Partners (a unit of Carlyle Group and Singapore’s sovereign wealth fund GIC) slashed its stake in the telco to 14.4% from 68.4% previously, while GIC’s stake was reduced to 9.9% from 10.9%.

Headquartered in Toronto, with offices in Hong Kong, London, New York City and Sao Paulo, CPPIB is governed and managed independently of the Canada Pension Plan; at 31 December 2014 the Canada Pension Plan fund totalled CAD238.8 billion (USD187.8 billion).

Hong Kong, Hong Kong Broadband Network (HKBN)