Private equity firm CVC Capital Partners started taking pitches from banks seeking to advise CVC on a planned float of Hong Kong Broadband Network, people with knowledge of the matter told WSJ.
The IPO could raise between US$500 million and US$1 billion and is scheduled to take place in the first quarter of next year, they said.
In 2012, CVC, which is based in Europe, acquired Hong Kong Broadband Network and long-distance telecommunication operations from City Telecom Ltd., which had been established by entrepreneur Ricky Wong, in a deal valued at five billion Hong Kong dollars (US$645 million).
Hong Kong Broadband Network is the city’s No. 2 provider of residential and corporate broadband and telecommunications services, competing against such rivals as Richard Li’s HKT Trust and HKT Ltd., the largest broadband provider; tycoon Li Ka-shing’s Hutchison Telecommunications Hong Kong Holdings Ltd., and i-CABLE Communications Ltd. Recently, however, the Hong Kong broadband market has become saturated, with limited subscriber growth, according to Morgan Stanley.
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, CVC Capital Partners, Hong Kong Broadband Network, IPO, Initial Public Offering, Europe, City Telecom Ltd., Ricky Wong, Hong Kong, HKT Trust, HKT Ltd., Li Ka-shing, Hutchison Telecommunications Hong Kong Holdings Ltd., i-CABLE Communications Ltd., Morgan Stanley.