I Squared Weighs Options for Hong Kong’s HGC Global

I Squared Capital, an infrastructure-focused private equity firm, is weighing options for its Hong Kong fixed-line operator HGC Global Communications Ltd., according to people familiar with the matter.

The U.S.-based firm is considering possibilities including combining HGC Global’s international network assets with another company in the sector such as PCCW Global, the international enterprise unit of HKT Ltd., the people said. I Squared could also explore selling a stake in HGC Global or preparing an initial public offering, the people said, asking not to be identified because the matter is private.

Considerations are at an early stage and I Squared could still decide against pursuing any transaction, the people said. Representatives for I Squared and HKT declined to comment. A representative for HGC Global did not respond to requests for comment.

HKT, a Hong Kong telecommunications firm controlled by tycoon Richard Li, has been considering options including a sale of its PCCW Global unit, which could be valued at as much as $1 billion, Bloomberg News has reported.

In 2017, I Squared bought HGC Global, then called Hutchison Global Communications Ltd., from Hong Kong billionaire Li Ka-shing’s telecommunications business Hutchison Telecommunications Hong Kong Holdings Ltd. for HK$14.5 billion ($1.9 billion).

HGC Global provides telecom, data center and broadband services to consumers and corporate customers in Hong Kong. It also operates an international network with routes into mainland China and connections to other global providers.

©2020 Bloomberg L.P.

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