CVC Capital Partners has agreed to acquire Hong Kong Broadband Network (HKBN), the telecommunication business unit of the Hong Kong-listed City Telecom. HKBN is the second largest broadband operator in Hong Kong, according to a CVC statement. It operates broadband internet, IDD telephony and multimedia productions businesses.
The acquisition was valued at HKD $5 billion (€491 million; $644 million), and will be financed by a mixture of equity and debt that was not detailed. Bank debt will be underwritten by JPMorgan and Standard Chartered Bank, according to a statement.
CVC’s Hong Kong-based managing partner Roy Kuan did not return calls seeking comment.
Key executives and employees will remain at HKBN after the transaction, the statement noted.
The HKBN transaction represents CVC’s first China buy this year. The firm’s other China investments include Hong Kong-based Sun Hung Kai Financial, Hong Kong-listed paper manufacturer Hung Hing Printing, Shanghai-based flooring maker and Zhuhai-based beverage packaging company Zhuhai Zhongfu.
CVC has most recently been in the news regarding its Formula F1 investment, which is expected to list in Singapore.