Two private equity groups submit bids for Hutchison fixed-line unit

A consortium of private equity firms TPG Capital Management LP and MBK Partners, and investment manager I Squared Capital Advisors LLC have put in separate bids for the fixed-line phone unit of Hong Kong’s richest man, Li Ka-Shing, said people involved in the matter.

Hutchison Global Communications Ltd (HGC), a unit of Hutchison Telecommunications Hong Kong Holdings Ltd, provides a range of fixed-line telecommunications services in Hong Kong and overseas for corporate and residential users.

HGC, which had earnings before interest, tax, depreciation and amortisation (EBITDA) of $161 million in 2016, is likely to be valued at $1.2 billion to $1.5 billion, three people told Reuters.

A final decision on the sale process is likely to be taken by HGC as soon as next week, said the people, who requested anonymity because the transaction details have not been released publicly.

Representatives for MBK and HGC declined to comment. TPG and I Squared Capital did not immediately respond to requests for comment.