New World Telecommunications

New World Telecommunications
New World Telecom
FormerlyNew World Telephone
Company typesubsidiary
Industrytelecommunications
PredecessorRowenty Power
Founded14 January 1992 (1992-01-14) in British Hong Kong
Defunct2016
Fateacquired by Hong Kong Broadband Network
SuccessorHKBN Enterprise Solutions
Headquarters
Hong Kong S.A.R.
,
China
OwnerNew World Development
Parent
Chinese name
Traditional Chinese新世界電訊
Literal meaningNew World Telecommunications
Transcriptions
former Chinese name
Traditional Chinese新世界電話
Literal meaningNew World Telephone
Transcriptions
Websitenewworldtel.com

New World Telecommunications Limited (abb. NWT) also known as New World Telecom, was a fixed line provider of Hong Kong S.A.R., China. It was a subsidiary of New World Development, via New World Telephone Holdings; New World Telecommunications was acquired by a competitor, Hong Kong Broadband Network (HKBN) in February 2016.[1][2] In the same year New World Telecommunications was renamed to HKBN Enterprise Solutions, as a subsidiary of HKBN.[3]

History

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New World Telecommunications was established in 1992 by transforming from Rowenty Power, a shelf company that was incorporated on 14 January of the same year in the British Hong Kong.[4] At that time it was known as New World Telephone.[4] New World Telephone Holdings was the direct parent company, while itself a subsidiary of New World Development. New World Telecommunications acquired the licence of fixed-line telephone in 1995.[5]

Immediately after the deregulation of the telecommunication industry of Hong Kong in 2003, New World Telecommunications, along with Hutchison Global Communications, Wharf T&T, were the major competitors to PCCW (formerly Hong Kong Telecom), the dominant operator at that time.[6] New World Telecommunications was aimed for business customers.[5]

New World Telecommunications had a sister company New World PCS Holdings which was a mobile network operator in Hong Kong. They both under the same direct parent company New World Telephone Holdings. However, New World PCS Holdings was sold to Asia Logistics Technologies in 2004, as part of a backdoor listing.[7] Asia Logistics Technologies was subsequently known as New World Mobile Holdings from 2004 to 2010. However, the shares of the successor of New World Mobile Holdings, CSL New World Mobility, was sold by New World Development to Hong Kong Telecom, a subsidiary of PCCW in 2013.[8]

In February 2016, New World Telephone Holdings sold New World Telecommunications and other businesses in Hong Kong, Macau and Shenzhen to its competitor Hong Kong Broadband Network (HKBN) for HK$650 million;[5][9] the latter was disinvested by local telecommunication tycoon Ricky Wong in 2012. It was reported that the takeover of New World Telecommunications was a leverage buyout, which was financed by a borrowing from JPMorgan Chase for 5 years by HKBN.[5] In March 2016, the Communications Authority of Hong Kong, announced that they would not to commence an investigation on the takeover under the Competition Ordinance of Hong Kong.[10] It was reported that despite both HKBN and NWT were telecommunication companies, due to one company aimed at residential customers and another aimed at business customers, it would not strengthen the oligopoly of the telecommunications market of Hong Kong.[11]

Financial Times compared the disinvestment of Hutchison Global Communications by CK Hutchison Holdings in 2017 and New World Telecommunications by New World Development, were part of "the process of succession planning [of the largest tycoon families of Hong Kong] as the founders reach retirement age or pass away.";[12] Cheng Yu-tung, the founder of New World Development, passed away in September 2016. The disinvestment was also rumoured as part of a total withdrew of Hong Kong market (Chinese: 撤資),[8] nevertheless the analyst concluded that the disinvestment by New World Development, was part of a project that strengthen the core business of the conglomerate.[8]

References

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  1. ^ Bushell-Embling, Dylan (21 February 2016). "HKBN to acquire New World Telecom for HK$650m". Computer World (Hong Kong edition). Questex. Retrieved 27 February 2018.
  2. ^ "HKBN Announces Acquisition of New World's Telecommunications and Online Marketing Solutions Business | HKBN strengthens its Enterprise Solutions business and drives consolidation in the fixed line market in Hong Kong" (Press release). HKBN. 18 February 2016. Retrieved 27 February 2018.
  3. ^ "New World Telecom Renamed HKBN Enterprise Solutions | Fully Integrated Business Harnesses Synergy to Pounce on Market Opportunities" (Press release). HKBN. 1 September 2016. Retrieved 27 February 2018.
  4. ^ a b Data in Hong Kong Companies Registry
  5. ^ a b c d 純官賣產停不了 20年固網生意脫手 新世界電訊6.5億售予香港寬頻. Ming Pao (in Chinese (Hong Kong)). Hong Kong: Media Chinese International. 19 February 2016. Retrieved 27 February 2018.
  6. ^ "Ofta to conclude interconnection plan". South China Morning Post. Hong Kong. 28 January 2003. Retrieved 27 February 2018.
  7. ^ "Proposed Acquisition of New World PCS Holdings Limited by Asia Logistics Technologies Limited" (PDF) (Press release). Hong Kong: New World Development. 1 April 2004. Retrieved 27 February 2018.
  8. ^ a b c 剝離非核心資產 鄭氏兩年套近400億. Ming Pao (in Chinese (Hong Kong)). Hong Kong: Media Chinese International. 19 February 2016. Retrieved 27 February 2018.
  9. ^ "Major Transaction | Acquisition of the telecommunications and online marketing solutions business owned by New World Telephone Holdings Limited through the acquisition of the entire issued share capital of Concord Ideas Ltd. and Simple Click Investments Limited" (PDF) (Press release). HKBN. 18 February 2016. Retrieved 27 February 2018 – via Hong Kong Exchanges and Clearing website.
  10. ^ "Communications Authority Decided not to Commence an Investigation Concerning HKBN's Acquisition of New World Telecommunications" (Press release). Hong Kong: Communications Authority. 31 March 2016. Retrieved 27 February 2018.
  11. ^ 新世界固網資產6.5億售香港寬頻. Sing Tao Daily (in Chinese (Hong Kong)). Hong Kong. 19 February 2016. Retrieved 28 February 2018.
  12. ^ Massoudi, Arash; Weinland, Don (31 July 2017). Written at London, Hong Kong. "Li Ka-shing agrees $2bn Hutchison fixed-line business sale". Financial Times. London. Retrieved 20 November 2017.
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