HG CAPITAL takes majority stake in MANX TELECOM

European sector-focused private equity firm HgCapital has successfully agreed to acquire a majority equity stake in Manx Telecom, previously a wholly owned subsidiary of Telefónica. The buyout was executed alongside CPS Partners, a specialist international telecommunications management company. Subject to customary local regulatory clearances, the transaction includes a capital commitment of approximately £11 million from the listed vehicle HgCapital Trust plc, representing 15% of the sponsor's total equity ticket. The buyout perfectly aligns with HgCapital’s core thesis of backing highly resilient, growth-oriented platforms. The Isle of Man offers a robust macroeconomic backdrop (boasting 25 years of unbroken GDP growth) and a highly favorable regulatory environment that encourages sustained infrastructure investment. Partnering closely with the management team, the financial sponsor intends to drive significant value creation by upgrading the core network and funding a new state-of-the-art data hosting center. Furthermore, HgCapital will focus on operational margin improvements and actively support a targeted buy-and-build strategy to accelerate the expansion of high-margin off-island opportunities.