Leading global law firm Herbert Smith Freehills has advised I Squared Capital Advisers on the US$1.86 billion acquisition of Hutchison Telecommunications' fixed line business, Hutchison Global Communications (HGC).

HGC provides fixed-line telecommunications services for corporate and residential users in 134 countries and territories worldwide, utilizing capacity in 33 cable systems interconnecting five continents with 25 points of presence globally, including three major hubs in Hong Kong, Los Angeles and London.

I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in North America, Europe, and select high-growth economies. The firm has offices in New York, Houston, London, New Delhi, Hong Kong and Singapore.

The Herbert Smith Freehills' team was led by Hong Kong corporate partner Hilary Lau and Asia Head of TMT Mark Robinson, supported by partner Jason Sung, senior associates Sheena Loi, Calvin Ho, Peggy Chow, Sherry Lai and Jie Li, and associates Don Chan, Helen Huang and Stella Loong.

Asia head of competition Mark Jephcott, senior associate Adelaide Luke and associate Howard Chan assisted on competition aspects of the transaction, while senior associates Gillian McKenzie and Sarah Yazid assisted on employment aspects. In addition, the firm drew on resources from its Kuala Lumpur, Beijing, London, Singapore and Melbourne offices to complete due diligence on the transaction to tight deadlines.

"This is a major transaction for both parties, and for the Hong Kong market, and we were delighted to assist I Squared on its first telco investment," said Hilary and Mark.

"The deal reflects the changing shape of the telecoms market, where there has been significant activity recently in Hong Kong and across Asia Pacific. Telecoms companies are taking different strategies in order to invest in network upgrades and digital advances. Infrastructure funds and private equity are seeing increasing opportunities in network infrastructure."

Completion of the deal is subject to the approval of the transaction by the shareholders of HGC's parent company, HKEX-listed Hutchison Telecommunications Hong Kong Holdings Limited.