Private equity firm CVC Capital Partners has paid HK$5.1 billion ($656.8 billion) to acquire Hong Kong Broadband Network (HKBN) from former parent City Telecom.
The deal, first announced last month, gives CVC ownership of a fiber network passing around 2 million homes and commercial buildings.
CVC will also inherit HBKN's 1.3 million broadband, local telephony, IDD and IPTV subscriptions, and 3,000 employees.
CVC revealed that HKBN will continue to be operated by its current management team, including CEO William Yeung. Top managers will also be invited to co-invest with CVC, becoming owner-managers.
Seller City Telecom will be making a solid profit on the reported $400 million the company spent to deploy its FTTH network.
With these fixed telecom assets divested, City Telecom is expected to now concentrate on its multimedia business.
The company is in the process of applying for a terrestrial free-to-air broadcasting license, and the Hong Kong Executive Council is expected to decide whether to grant this license soon.