The conglomerate CK Hutchison Holdings Ltd. has agreed to sell its fixed-line telecommunications business to a U.S. private equity fund for 14.5 billion Hong Kong dollars ($1.86 billion), the companies said Sunday.
The business, Hutchison Global Communications Investment Holdings Ltd., provides telecommunications services to carriers and other businesses in Hong Kong.
The New York-based investment fund, I Squared Capital, said the purchase will help the Hong Kong telecom company "develop new solutions to meet the ever-increasing demand for high-speed information infrastructure throughout the region and beyond," according to a statement on the purchase.
The deal comes at a time of transition for CK Hutchison, owned by Li Ka-shing, Hong Kong's wealthiest man. The global conglomerate is among the city's most powerful firms. The Wall Street Journal reported in June that Mr. Li has told associates he will step down next year, and his companies have faced increasing competition from mainland competitors.
Write to Dan Strumpf at Dan.Strumpf@wsj.com
(END) Dow Jones Newswires
July 30, 2017 08:24 ET (12:24 GMT)