Hutchison Telecom shares rise on divestment of fixed-line business
Sale marks latest foray by infrastructure funds and private equity companies in the highly competitive fixed-line network market in Hong Kong
Hutchison Telecommunications Hong Kong, the city’s second-largest mobile network operator, saw its shares surge as high as 9.8 per cent in trading on Monday after the company moved to divest its fixed-line business for HK$14.5 billion (US$1.9 billion) in cash.
“The [HGC] deal reflects the changing shape of the telecommunications market, where there has been significant activity recently in Hong Kong,” said Hilary Lau and Mark Robinson of international law firm Herbert Smith Freehills in a statement.
“The [HGC] deal reflects the changing shape of the telecommunications market, where there has been significant activity recently in Hong Kong
Herbert Smith Freehills advised I Squared Capital on the acquisition, which marks the first telecommunications investment for the independent global infrastructure investment manager.
The company is mostly focused on energy, utilities and transport deals in North America, Europe and select high-growth economies.