The deal, struck on 3 August, means HGC will become the effective majority shareholder of GTMH should it be backed by local regulators.
The deal will make HGC one of the first Hong Kong-based telecoms companies to tap into and invest in the growing Myanmar telecoms market, which was opened up to outside investors in 2013.
Myat Thuzar Than, Consul-General of Consulate General of the Republic of the Union of Myanmar in Hong Kong said, “The agreement between HGC and GTMH is a breakthrough to the telecommunications industry in Myanmar and also a huge boost for the economic development for the country as well as ASEAN in long term. We are pleased that the potential and bright prospects of Myanmar are recognised by a leading global carrier and I believe this can bring both companies and the economies a great success. ”
Myanmar is one of the fastest growing telecoms markets globally and is part of the Association of Southeast Asian Nations (ASEAN). Other investors in the country over recent years have included Norwegian operator Telenor and Middle-Eastern telco firm Ooredoo.
Alexis Delevaux, CEO of GTMH said: “We are pleased to announce the news and we believe that the acquisition can provide a more comprehensive and broader portfolio of telecommunications services to local corporate and customers. Riding on HGC’s experience and strong international connectivity as well as its success in Hong Kong local business, our business can further expand locally and globally.
“The agreement will not only assist in the deployment of the upcoming influential projects in Yangon and key regions in the country but also support and boost Myanmar in further expanding the telecommunications industry and reinforce the internet and economic development eventually.”
HGC and GTMH, which was launched in 2014, already work together, having launched Infrastructure-as-a-service (IaaS) solutions for Myanmar enterprises, with both hardware and software as part of the cloud virtual machine hosting service, earlier this year.
The agreement marks the first overseas expansion of HGC’s local fixed-line services business post-acquisition by I Squared Capital and enables the extension of its coverage in Myanmar. HGC was sold by CK Hutchison for $1.9 billion in 2017 and was later rebranded as HGC Global Communications.
Andrew Kwok, chief executive officer of HGC said, “HGC has been in collaboration with GTMH since 2014. With our experience and success in Hong Kong and international business, we believe that the investment will bring more opportunities to HGC and GTMH as well as the telecommunications industry of Myanmar.
“The investment once again showcases a successful example of our determination and ambition to extend our business outside Hong Kong as well as to strengthen our position in the region.”
