New owner, I Squared, earmarks more investment for Hong Kong telecoms firm HGC

The US private equity firm targets further infrastructure expansion at HGC, which it bought for US$1.9 billion from Li Ka-shing’s Hutchison Telecom

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Andrew Kwok Wing-pong, chief executive at HGC Global Communications, announced the expansion plans of the newly rebranded Hong Kong fixed-line network operator at a press conference in Wan Chai. Photo: K.Y. Cheng

Published: 8:04am, 19 Dec 2017Updated: 8:04am, 19 Dec 2017

I Squared Capital, the new owner of the former fixed-line network business of tycoon Li Ka-shing, plans to boost its telecommunications infrastructure investment in Hong Kong, while committing broad support for the future roll-out of 5G mobile services in the city.

The New York-based private equity firm had paid US$1.9 billion to acquire Hutchison Global Communications, which was divested by Li’s Hutchison Telecommunications Hong Kong in July.

It marked the first telecoms investment for I Squared Capital, which is an infrastructure investment manager focused on the energy, utilities and transport sectors.

Managing director James Chern said on Monday that the company’s goal was to further develop the domestic and international operations of the newly rebranded HGC Global Communications, but declined to provide more detail.

“As long as it’s a good business plan with attractive return, we don’t put a specific limit to how much we can invest each year,” said Chern.

Under Hutchison Telecom, HGC had spent more than HK$10 billion over two decades to build an extensive fibre-optic network across Hong Kong. It operates more than 1.4 million kilometres of fibre optic cable – enough to circle the earth about 36 times – that connects to about 14,200 buildings in the city.

Andrew Kwok Wing-pong, the chief executive at HGC, said the company will further expand its network coverage to support the future roll-out of 5G services by various mobile network operators in the city and the increased deployment of the internet of things (IoT).