CK Hutchison completes $1.9bn sale of HGC to I Squared Capital
Hutchison Global Communications (HGC) is now owned by a US private equity firm, I Squared Capital.
CK Hutchison, the parent company of Hutchison Telecommunications Hong Kong Holdings (HTHKH), has confirmed the completion of its sale of HGC to I Squared Capital.
The deal, which was announced earlier this year, amounts to roughly $1.9 billion, the proceeds of which CK Hutchinson said it would use to invest in its mobile business.
In a letter detailing the completion of the transaction, Andrew Kwok, former president of international and carrier business at HGC also confirmed his appointment as CEO, saying: “I am honoured to be appointed as CEO of HGC today. Together with my executive team and colleagues, we are confident to deliver what we have promised and beyond.”
Kwok said that, in addition to his appointment, a new executive management team has put into place since the announcement of the acquisition. HGC has identified the necessary assets and engaged the personnel needed to make HGC into a success, he said.
I Squared Capital, reportedly beat out a number of other bids to win the deal, including Chinese government-backed CITIC.
The investment company, according to Infrastructure Investor, raised a $3 billion infrastructure investment fund in 2015, and later in the year added $200 million from the US government’s Overseas Private Investment Corporation.
In the letter Kwok mentions that aside from the support it is providing the company for growth, HGC will also be able to tap into a “wide range or resources in their portfolio” which includes energy, utilities and transport. He adds that HGC and HTHKH will remain close strategic and commercial partners and HGC will use the synergies from I Squared Capital and HTHKH to “enhance its portfolio and business development”.
Last month HGC confirmed its partnership with Veon – formerly named VimpelCom – to provide multinational customers with their own dedicated virtual private network services. The move is set to expand both company’s portfolio of services.
Kwok ended the letter with a message looking to the future. With the mention of globalisation, personalisation and fragmentation, according to Kwok the world is moving towards “fourth industrial revolution”, one which HGC is not only prepared for but wants to be a part of.