Hong Kong telco says purchase price is subject to certain adjustments, plans to focus on mobile operations

Hutchison Telecommunications Hong Kong Holdings (HTHKH) has completed the sale of its Hutchison Global Communications (HGC) carrier business for HK$14.5 billion (€1.58 billion), subject to post-closing adjustments.

The Hong Kong-based telco in July revealed plans to sell HGC to fund manager I Squared Capital.

"The estimated price of HK$14,497 million was paid in cash by the purchaser to the company," it said in a short statement on Tuesday.

It added that, as previously disclosed, the estimated price will be adjusted to to take into account external debt, cash, working capital and capex as of the closing date, 3 October. It will make an announcement once the final figure has been established, it said.

HTHKH plans to use the proceeds from the sale to boost its mobile business.

The telco offers mobile services in Hong Kong and Macau under the 3 brand, serving 3.3 million customers as of the end of June. Its parent is CK Hutchison, which also owns 3 Group, provider of 3-branded services in various European and Asian markets.

HGC provides wholesale and international telecoms, enterprise IT, and data centre services. It also offers residential fixed-line services in Hong Kong under the 3 Broadband brand.

HGC won the Most Innovative Wholesaler award at the 2017 Carriers World awards, which were presented in London last week.