Hutchison to sell HK fixed-line business to I Squared for US$1.9b

Hong Kong

HUTCHISON Telecommunications Hong Kong Holdings Ltd said on Sunday that it agreed to sell its fixed-line telecoms business to I Squared Capital for about US$1.9 billion, raising funds to invest in mobile phone services and for working capital.

The company is selling Hutchison Global Communications (HGC), which provides fixed-line phone services as well as Wifi all around Hong Kong, for HK$14.5 billion (S$2.53 billion) in cash to a unit of I Squared Capital, according to a filing to the Hong Kong stock exchange. The value may be adjusted later based on debt, cash levels and other financial data of the business at the time of the closing.