Hong Kong's City Telecom to exit telecoms to focus on IPTV
Louise Duffy ©RapidTVNews | 11-04-2012
Hong Kong telco City Telecom is exiting the telecoms business in Hong Kong and Canada to focus solely on its IPTV and multimedia business currently offered under its Hong Kong Broadband Network (HKBN) brand.
City Telecom plans to sell its telecom business to private equity firm Metropolitan Light Company for HK$4.95 billion. Completion of the transaction is subject to shareholder approval. Part of the proceeds of the sale will be returned to shareholders, and the rest will be invested in the multimedia business.
City Telecom said the sale will allow the firm to focus on its television broadcast business, which already employs 250 staff and will grow by another 170 in the near future. It said the broadcast business is a long-term development project, requiring investments of at least HK$2.50 billion over the next four years.