CK Hutchison vowed to strengthen its “market leading” position in mobile, by investing the proceeds from the HKD14.5 billion ($1.9 billion) sale of fixed business Hutchison Global Communications (HGC) into its wireless arm.
The multinational group, which operates wireless services across various markets in Asia and Europe, confirmed the sale of its Hong Kong fixed assets to Asia Cube Global Communications yesterday.
Its deal is subject to shareholder approval and is expected to be completed during or around October 2017.
In a statement, CK Hutchison’s Telecom arm (HTHKH) said HGC would continue to be a supplier of fixed services to the group, but selling the unit would allow increased investment in its mobile business.
“The transaction will enable HTHKH to focus its resources more effectively on its core business of providing mobile services to its customers,” it said.
Chairman of the company Canning Fok added: “The transaction represents an excellent opportunity to crystalise value for the company and its shareholders. The company will utilise the proceeds efficiently to continue growing its mobile business.”
Asia Cube Global Communications is owned by US investment company I Squared Capital. It focuses on supplying energy, utilities and transport in selected “high growth” markets.
As part of its ongoing expansion plans, Hutchison last week agreed to acquire Tele2’s Austrian business to increase its presence in the country and better compete with Telecom Austria.
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