The consortium of private equity firms MBK Partners and TPG has concluded to acquire a fixed-line telecommunications business of skill hulk The Wharf (Holdings) for HK$9.5 billion in cash, violence Hong Kong Broadband Network (HKBN) in a hotly contested bidding.
The ordering of Wharf TT was jointly announced by Wheelock and Company and a subsidiary, a Wharf group, in a filing with a Hong Kong batch sell late on Tuesday.
It outlines a a latest big-ticket corporate merger in Hong Kong’s telecommunications attention given PCCW-owned HKT bought CSL New World Mobility for US$2.43 billion in 2014.
Wharf TT is touted to be a city’s largest enterprise-focused, fixed-line telecommunications network services provider, with some-more than 50,000 corporate customers.
Wheelock and a Wharf organisation estimated to benefit HK$4.5 billion and HK$7.4 billion, respectively, from a sale of that business.
They pronounced a net item value of Wharf TT was HK$2.1 billion during a finish of June. It reported distinction after taxation of HK$301 million final year and HK$314 million in 2014.
The transaction with MBK and TPG is approaching to tighten on or before Nov 23. The dual partners have determined a new 50-50, special-purpose association for appropriation Wharf TT.
“Both MBK and TPG have endless investment knowledge in telecommunication resources around a world,” Wharf organisation authority and handling executive Stephen Ng Tin-hoi pronounced in a statement. “We trust that Wharf TT will be best positioned to grasp a subsequent proviso of expansion and growth after a acquisition.”
Sources had progressing pronounced HKBN, a second-largest fixed-line residential broadband user in Hong Kong, submitted a many assertive bid to acquire Wharf TT, that runs craving broadband, information centre and complement formation services.
Other reported bidders enclosed mobile network user SmarTone Telecommunications and US private equity association KKR.
San Francisco-based TPG, one of a world’s largest private equity firms, supposing a vital investment in Hong Kong-listed Lenovo Group for a merger of IBM’s personal computing business in 2005.
MBK, with domicile in Seoul, is famous as North Asia’s biggest eccentric buyout firm. It has a prolonged lane record of investing in Asian telecommunications and pay-TV assets, including in Taiwanese wire TV provider China Network Systems.