City Telecom sells assets
Hong Kong’s City Telecom has agreed to sell its assets in Hong Kong, China and Canada to private equity firm CVC Capital Partners for $645.2 million, in a bid to focus on its television broadcast business.
Among the assets to be sold are long distance phone services in Hong Kong and Canada and broadband services in Hong Kong. City Telecom will also sell its call-centre and customer support services in China.
City Telecom plans to use the proceeds from the sale to build up its free-to-air television service, which is estimated to cost $321.9 million over the next four years.
CVC is acquiring the City Telecom assets through Metropolitan Light Company Limited.
Last year the private equity firm bought a 49% stake in the Indonesian cable TV and internet businesses of First Media for $269 million.