CK Hutchison Holdings has agreed to sell its fixed-line telecommunications business to I Squared Capital, through its ISQ Global Infrastructure Fund II, for $1.86 billion.
The assets included are owned by closely held unit Hutchison Global Communications Ltd.
The transaction is expected to close by October 2017.
HGC is a leading fixed-line service provider to fixed and mobile carriers, OTT service providers, corporate and business, residential and data centers in Hong Kong and around the world. Its over 1.4-million-kilometer fiber network connects to over 14,200 buildings and it is also one of Hong Kong’s largest-scale Wi-Fi service providers with over 25,000 Wi-Fi hot spots.
For I Squared Capital, founded by former Morgan Stanley Infrastructure Partners dealmakers, the agreement comes about a month after it said it was seeking $5 billion for a global fund to invest in power, transportation and utilities companies, according to Bloomberg.