This article was authored by Dylan Bushell-Embling, and was originally posted on telecomasia.net.
Hutchison Telecommunications Hong Kong Holdings (HTHKH) will reportedly attract two separate bids for its fixed line unit Hutchison Global Communications (HGC).
A consortium of two private equity companies – TPG Capital Management and MBK Partners – and Hong Kong operator HKBN are preparing separate bids for HGC, Reuters reported, citing multiple unnamed sources.
The deal could be worth between $1.5 billion and $1.9 billion, according to the sources, and first round bids are due by the end of June.
The TPG and MBK consortium acquired Wharf T&T's fixed line ISP business in October for HK$9.5 billion ($1.22 billion), so if it is successful with its bid HGC could potentially be merged with these operations. HKBN would meanwhile be able to augment its own fixed line operations.
HGC offers wholesale telecoms services in a number of markets, and owns and operates an extensive domestic fiber network. HGC's parent HTHKH is itself a subsidiary of conglomerate CK Hutchison Holdings, owned by billionaire Li Ka-Shing.