CVC Capital Partners ("CVC") confirms that a company formed by CVC Funds has signed Purchase Agreements to acquire Hong Kong Broadband Network ("HKBN") and IDD businesses from City Telecom Inc. ("CTI").
HKBN is the second largest broadband operator in Hong Kong. It owns and operates a fiber network which passes approximately 2 million homes and 1,700 commercial buildings in Hong Kong. HKBN offers Broadband, VoIP, IPTV, and IDD services to its customers and subscribers across the city.
The transaction value is approximately HK$5 billion, to be funded by a combination of equity and debt financing. The equity will be provided by CVC Funds. Bank debt has been underwritten by JPMorgan and Standard Chartered Bank.
HKBN's executive team and employees will continue to operate the business. The key executives in HKBN will remain, including William Yeung (CEO), NiQ Lai (CFO), Sui Lun Lo (CTO), and John Chong (MD, Corporate Division).
All customer services will be unaffected by the transaction and shall continue as usual.
Roy Kuan, Managing Partner, CVC Asia, said, "We have drawn upon our Global Telecom, Hong Kong, Operations and Financing teams to achieve signing. We look forward to supporting HKBN's management and employees in providing high speed and high reliability broadband and telecom services to its customers.
About CVC Capital Partners
CVC is a leading international private equity firm. Founded in 1981, CVC today has a network of 20 offices and some 250 employees throughout Europe, Asia and the US. CVC manages funds on behalf of over 300 investors including pension funds, financial institutions, sovereign wealth funds and other investors. To date, CVC has raised over US$44 billion in funds and has completed over 290 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of US$167 billion. CVC Funds currently own over 60 companies worldwide, which generate over US$127 billion in revenues and employ around 400,000 people.