Abstract

HKBN was a leading provider of ultra-high speed broadband and other telecommunication services in Hong Kong. The Company went through a management buyout (MBO) in May 2012 and completed its IPO with a market capitalization of over HKD9 billion in March 2015. To secure the equity funding required for the MBO, the management team partnered with CVC Capital Partners. A total of 88 managers also joined CVC and invested at preferential terms to become Co-Owners. The opportunity to become owners was a way to motivate management and set HKBN apart from its competitors. Now that the Company had completed a successful IPO, the senior management was contemplating how to develop a new broader based Co-Ownership program