HK: Clifford Chance engaged in landmark PE deal
By Kanishk Verghese
Thursday, 12 April 2012
Clifford Chance has advised the Metropolitan Light Company, formed by CVC Capital Partners, on its $641million acquisition of the telecommunications and broadband assets of Hong Kong-based telecommunication services provider City Telecom. This is the largest private equity-backed deal of this year till date, according to Reuters data.
CVC will acquire City Telecom’s IDD business in Hong Kong and Canada, as well as Hong Kong Broadband Network, the second-largest broadband operator in Hong Kong. The acquisition has been backed with a HK$2.5 billion loan from Standard Chartered Bank and JP Morgan.
Hong Kong-based partner Neeraj Budhwani and Tokyo partner Andrew Whan co-led the deal, while partner Matthew Truman advised on the financing aspects of the transaction in Hong Kong. Latham & Watkins, meanwhile, represented City Telecom.
Reuters added that City Telecom will use the proceeds from the sale to develop its free-to-air television service, which includes a multimedia centre and is expected to cost HK$2.5 billion over the next four years. ALB
Kanishk Verghese is North Asia journalist at ALB. Follow him on Twitter: @ALB_Magazine.
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