Clearwater Capital in $402m buyout of Asia Netcom

Clearwater Capital Partners, a US special situation fund manager with offices in Asia, is part of a consortium that has concluded a $402 million buyout of Asia Netcom.

Clearwater Capital Partners, a US firm focused on special situation investments, is part of a consortium that bought Asia Netcom, a Hong Kong-based regional telecoms service provider, from former owner China Netcom Group, for $402 million (€314 million).

The consortium also comprises Ashmore Investment Management, a London-based emerging market asset manager, and Spinnaker Capital, an emerging market investment manager, according to a statement.

The transaction resulted from the restructuring of China Network’s international strategy aimed at “enhancing the value of (our) state-owned assets,” said Zuo Xunsheng, president of China Network Croup, a mainland China fixed-line telecommunications operator.

The transaction involves a $169 million purchase of Asia Network’s international service unit and a $233 million pan-Asian submarine cable network. The new owners, who aim to expand Asia Network’s presence across Asia Pacific, will retain the current management. Asia Network was launched in 2003, and has grown at a year-on-year rate of 18 percent, Bill Barney, president and chief executive officer of the company, said.

Clearwater raised $300 million for an Asia distressed and special situation fund last year.