CVC makes over 3x on HKBN exit

The firm has sold most of its shares in the broadband operator’s $750m, with CPPIB now the largest shareholder

The Asian arm of global private equity firm CVC Capital Partners exited a large portion of its investment in Hong Kong Broadband Network (HKBN) this week when the network operator completed its $750 million IPO in Hong Kong.

CVC sold shares worth $625 million in the IPO, making a return of over 3x times its investment over a three year holding period, sources confirmed.

The total global offering of HKBN initially consists of a total of about 645 million shares at a price of HK$9.00 ($1.16; €1.09) per share.

Other private equity investors in the business include the Government of Singapore Investment Corporation, which sold a partial stake in the IPO, and North American LP the Canada Pension Plan Investment Board, which bought $200 million worth of shares and is now the company’s biggest shareholder – holding 17.14 percent of the business.

CVC retains a 14.4 percent stake, having acquired about 70 percent of the company, which operates broadband internet, IDD telephony and multimedia productions businesses, in April 2012 for HK$5 billion (at the time $644 million; €491 million), Private Equity International reported earlier.

CVC has been actively exiting its investments in Asia Pacific in recent months. In December, its Asia fund exited three portfolio companies across Japan, Taiwan and the Philippines, returning a combined $1 billion to investors, according to the firm.

The exits, which all completed in mid- to late-December, brought the Asia firm’s total distributions in 2014 to $2 billion. The firm did not disclose the return information on these investments.