City Telecom exits telecoms in Hong Kong

It will be Asia's largest private equity-backed deal so far this year.

City Telecom (H.K.) Limited, Hong Kong’s second largest provider of broadband Internet, is selling its telecom and broadband operations for some US$644 million to CVC Capital Partners, one of the world’s top five private equity firms.

City Telecom intends to use the proceeds from the sale to exit the telecoms business in Hong Kong and Canada and focus solely on its free-to-air television service and multimedia business currently offered under its Hong Kong Broadband Network (HKBN) brand.

HKBN offers diversified products that service over 1.2 million subscriptions for broadband, local telephony and IPTV services.

Part of the sale proceeds will be returned to City Telecom shareholders with the rest being invested in the multimedia business.

City Telecom said the sale will allow it to concentrate on its TV broadcast business, which it described as a long-term development project requiring investments of some US$322 million over the next four years. City Telecom said it expects to be one of three new recipients of free-to-air licences in Hong Kong.

Based in London and Luxembourg, CVC also owns Australian TV network, Nine, and last year bought a 49% stake in the cable TV and Internet businesses of Indonesian firm, First Media.

Also Read

Is 5G the saving grace of Hong Kong’s mobile services market?

HTHK collaborates with BAHK for seamless 5G connectivity at Art Basel Hong Kong

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit