HGC Global Communications

HGC Global Communications Limited, formerly known as Hutchison Global Communications Limited (abb. HGC), is an internet service provider of Hong Kong. In the past it was part of Hutchison Telecommunications (Hong Kong), itself part of a mega-conglomerate CK Hutchison Holdings. Hutchison Global Communications was a listed company, via its parent company Hutchison Global Communications Holdings from 2004 to 2005.

HGC Global Communications
Formerly
Callas(1992–1993)
Hutchison Global Communications(1993–2000)
Hutchison Global Crossing(2000–2002)
Hutchison Global Communications(2002–2017)
TypePrivate
IndustryTelecommunications
Founded22 October 1992 (1992-10-22) in British Hong Kong
Headquarters
Hong Kong
ServicesInternet service provider
Websitewww.hgc.com.hk

In July 2017, Hutchison sold HGC to a private equity fund Asia Cube Global.[1]

History

Hutchison Global Communications (HGC) was a major investor in the fibre-optic networks of Hong Kong.[2] In 2003, the year of deregulation of the market of telecommunication of Hong Kong, HGC was one of the competitor of PCCW, the dominant operator at that time, which PCCW was majority owned by Richard Li, the younger son of the chairman of Hutchison Whampoa, Li Ka-shing.[3] HGC became a joint venture of Hutchison Whampoa and Global Crossing from 2000[4] to 2002.

In 2004, a Bermuda incorporated, Hong Kong listed company, Vanda Systems & Communications Holdings acquired HGC as part of a backdoor listing.[5] The Bermuda company was renamed into Hutchison Global Communications Holdings (former ticker symbol SEHK:757).[6] However, it was privatized by Hutchison Telecommunications International (a listed company of Cheung Kong–Hutchison group) in 2005.[7][8] A scandal was also exposed in the same year, which Vanda Systems & Communications Holdings, already an associate company of the mega-conglomerate Cheung Kong Holdings–Hutchison Whampoa in 2000, was involved in insider trading.[9]

In 2009 another listed company Hutchison Telecommunications Hong Kong Holdings was formed by the spin-off of some assets of Hutchison Telecommunications International, floating Hutchison Global Communications and Macau sister companies as a separate listed company.[10]

After the ultimate listed parent companies of the group, Cheung Kong and Hutchison merged to form CK Hutchison Holdings and CK Asset Holdings in 2015, HGC was sold to independent third parties Asia Cube Global in July 2017.[1] The parent company of Asia Cube Global was a private equity fund. In turn the fund was managed by I Squared Capital.[1][11] Financial Times described the disinvestment was "come after several similar divestments by tycoon families in Hong Kong."[11] It was previously rumoured to sell to the same buyer of WTT HK in June 2017.[2]

References
  1. Yeung, Karen (30 July 2017). "Hutchison Telecom sells fixed-line network business for US$1.9b". South China Morning Post. Hong Kong. Retrieved 20 November 2017.
  2. Perez, Bien (16 June 2017). "TPG Capital, MBK Partners' potential bid for Li Ka-shing's Hutchison Global Communications clouds WTT relaunch". South China Morning Post. Hong Kong. Retrieved 20 November 2017.
  3. "Ofta to conclude interconnection plan". South China Morning Post. Hong Kong. 28 January 2003. Retrieved 27 February 2018.
  4. "Hutchison Whampoa and Global Crossing complete telecom joint venture in Hong Kong" (Press release). Hong Kong: Hutchison Whampoa. 12 January 2000. Retrieved 11 January 2018.
  5. 中聯易名和記環球電訊. Apple Daily (in Chinese (Hong Kong)). Hong Kong: Next Media. 6 March 2004. Retrieved 20 November 2017.
  6. Webb, David. "Hutchison Global Communications Holdings Limited". Retrieved 20 November 2017.
  7. 霍建寧企硬 作價鐵價不二 和環私有小股東轟不公平. Apple Daily (in Chinese (Hong Kong)). Hong Kong: Next Media. 6 May 2005. Retrieved 20 November 2017.
  8. Guerrera, Francesco; Lau, Justine (4 May 2005). Written at Hong Kong. "Hutchison offers lower share buy-back". Financial Times. London. Retrieved 20 November 2017.
  9. 主要調查謝國輝等11人 中聯系統內幕波及霍建寧. Apple Daily (in Chinese (Hong Kong)). Hong Kong: Next Media. 8 September 2005. Retrieved 20 November 2017.
  10. 和電5月分拆港澳業務 將以股息實物分派 市值料逾百億. Apple Daily (in Chinese (Hong Kong)). Hong Kong: Next Media. 5 March 2009. Retrieved 20 November 2017.
  11. Massoudi, Arash; Weinland, Don (31 July 2017). Written at London, Hong Kong. "Li Ka-shing agrees $2bn Hutchison fixed-line business sale". Financial Times. London. Retrieved 20 November 2017.
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