Hutchison Telecom shares soar on speculation over bidding for its fixed-line network business

Private equity companies TPG Capital and MBK Partners look to be front-runners for Hutchison Global Communications

Reading Time:2 minutes

Jennifer Tan Yuen-chun, COO of Hutchison Telecom. Photo: Bruce Yan

Published: 10:38pm, 18 Jul 2017Updated: 8:57pm, 3 Jul 2018

Shares in Hutchison Telecommunications Hong Kong, the city’s second-largest mobile network operator, soared 9.3 per cent to close trading near a two-year high on Tuesday amid speculation over the bidding for the company’s fixed-line network subsidiary.

Private equity companies TPG Capital and MBK Partners look to be front-runners for Hutchison Global Communications (HGC), which could be the third major fixed-line business to be sold in Hong Kong since the separate acquisitions last year of Wharf T&T and the fixed-line broadband operation of New World Telephone Holdings.

Hutchison Telecom, a unit of tycoon Li Ka-shing’s CK Hutchison Holdings, has seen its shares climb since mid-May, when it reported a fluctuation in its price and trading volume because of media reports about its plan to explore options for HGC, including a potential sale.

The company’s share price closed at HK$3.04 on Tuesday, its highest since reaching HK$3.05 on October 28, 2015.

It is expected to provide some clarity on HGC’s future next week, either on or before the announcement of its interim results for the six months ended June 30, sources said.

San Francisco-based TPG, one of the world’s largest private equity firms, and Seoul-based MBK have partnered to submit a non-binding proposal to Hutchison Telecom, on June 30.