CVC in £400m telecoms deal

CVC CAPITAL Partners has underlined the private equity scramble to the East by agreeing to pay around HK$5bn (£405m) for the telecom and broadband assets of City Telecom HK.

The London buyout firm will use its Metropolitan Light Company for Asia’s largest private equity-backed deal this year, which is funded with a HK$2.5bn loan from Standard Chartered and JP Morgan.

City Telecom will use the proceeds from the sale of its telecoms businesses in Hong Kong and Canada to build out its free-to-air television service, which includes a multimedia centre and is expected to cost HK$2.5bn over the next four years.

CVC is also planning a part-listing of Formula One for around $1.5bn in Singapore in an attempt to cash in on interest in major sporting brands.