Two private equity groups have submitted bids for Hutchison Global Communications (HGC), the domestic fixed line business of Hong Kong’s Hutchison Telecommunications. A report from Reuters says that offers have come from a consortium of TPG Capital Management and MBK Partners, plus investment manager I Squared Capital Advisors. The TPG/MBK group already owns Hong Kong business services provider WTT (formerly Wharf T&T).
A final decision on the sale is expected to be made as early as next week, the report says, with the deal valued at an estimated USD1.2 billion to USD1.5 billion. A third bid may also come in from CITIC Telecom International Holdings, Reuters suggests. Rival telcos Hong Kong Broadband Network (HKBN) and SmarTone had also reportedly shown an interest in HGC, but backed off due to HGC’s valuation and because of concerns that local regulators could block a deal on competition grounds.