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.