CVC Asia Fund III has exited its remaining six percent stake in Hong Kong Broadband Limited (HKBN). The sale was made through a block trade of shares on the Hong Kong Stock Exchange, it is understood.
Alpinvest and Singapore’s GIC, which were also co-investors, are also understood to have sold shares. Spokespeople for Alpinvest in Hong Kong and GIC could not be reached for comment.
CVC’s realisation of its entire holding in HKBN, which specialises in residential broadband services, generated a 3.6x return and an internal rate of return of 58 percent.
CVC acquired HKBN in May 2012 from City Telecom for H$5 billion ($645 million; €578 million). The company held an IPO in March 2015 raising $750 million during which CVC’s 70.7 percent stake was reduced to 14.4 percent post-listing, according to reports.
The Canada Pension Plan Investment Board acquired more than 25 percent of the offering, according to reports.
Under CVC’s ownership, the company reported revenue growth of 8 percent and an EBITDA compound annual growth rate of 14 percent from August 2012 to the last twelve months to February 2015.
Residential broadband customers account for about 80 percent of revenues and the company increased its share of that market from 28.6 percent in December 2011 to 35.4 percent in January 2015.
CVC Asia Pacific Fund IV, a $3.5 billion, 2013-vintage fund, has so far made three investments, it is understood.