Billionaire Li Ka-shing's Hutchison Telecommunications today agreed to sell its fixed-line telecoms business to I Squared Capital for HK$14.5bn (£1.4bn) to focus more on its mobile phone services.
Hutchison Global Communications (HGC) runs fixed-line and wifi services in Hong Kong.
The value of the deal could be adjusted later based on debt, cash levels and other financial data of the business at the time of the closing, according to a filing to the Hong Kong stock exchange.
Subject to shareholder approval, it is expected to close in October.
CK Hutchison Holdings, which owns 66.1 per cent of Hutchison Telecommunications, will vote all its shares in favour of the sale during an unscheduled extraordinary meeting.
Hutchison owns the Three mobile network, and this sale could help it fund the company's plans to invest in 5G in the UK.
The firm's share price has jumped nearly 23 per cent since it acknowledged media reports about a possible sale of HGC in May.
A number of companies were interested in snapping up the fixed-line firm, but sources told Reuters it had narrowed down to I Squared and a consortium of private equity firms TPG Capital Management and MBK Partners.
I Squared invests in global infrastructure for energy, utilities and transport. It is also among potential buyers for Equis Energy, Asia's biggest independent renewable energy producer, for up to $5bn (£3.8bn).
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