Triple-play fibre provider Hong Kong Broadband Network (HKBN) has agreed to acquire the telecoms and online marketing business of New World Telecom in a cash transaction valued at HKD650 million (USD84 million). New World Telecom offers a range of fixed line and broadband services in both the business and consumer segments. The deal will see property-focused conglomerate New World Development exit the local communications market completely, having already offloaded its wireless unit New World Mobility, which is now owned by PCCW (HKT) and known as SUN Mobile.
HKBN’s chief financial officer Lai Ni Quiaque told the South China Morning Post: ‘We’ve just leapfrogged four to five years of organic growth and doubled our enterprise solutions business overnight with this deal. We’re continuing to grow and [are] on track to becoming the largest broadband provider in Hong Kong by 2019.’ The acquisition will be financed by a five-year loan facility of up to HKD700 million, underwritten by JPMorgan Chase Bank.
Separately, HKBN has signed a memorandum of understanding (MoU) with over-the-top (OTT) TV broadcaster TVB to pave the way for the launch of new bundled broadband internet and TV packages. TVB.com will shortly launch its new OTT video service, myTV SUPER, and the deal with HKBN will enable customers to access the service both via a mobile device and over HKBN’s fibre networks. Mobile operator Hutchison 3 recently also signed a deal with TVB to carry the myTV SUPER service.