Two bids expected for Hong Kong’s HGC

8 Jun 2017

Two groups are thought to be preparing separate bids to acquire Hutchison Global Communications (HGC), the fixed line unit of Hutchison Telecommunications Hong Kong Holdings (HTHKH), which is itself part of the CK Hutchison conglomerate. According to a report from Reuters, a consortium including private equity firms TPG Capital Management and MBK Partners is interested in HGC, as is local rival ISP Hong Kong Broadband Network (HKBN). First round bids are expected to be submitted by the end of this month. The HGC business could be valued at between USD1.5 billion and USD1.9 billion, Reuters suggests.

The TPG/MBK consortium already has an interest in Hong Kong’s telecoms market, having acquired business-focussed operator Wharf T&T last year from The Wharf (Holdings) for HKD9.5 billion (USD1.2 billion). HKBN, meanwhile, also competes directly with HGC in the territory’s fixed broadband sector.