MBK Partners and TPG have announced that they will jointly acquire, through a newly established and jointly owned special purpose vehicle, Wharf T&T Limited from The Wharf (Holdings) Limited. The transaction values Wharf T&T at HK$9.5 billion (US$1.22 billion).

Wharf T&T is a Hong Kong’s enterprise focused on telecom services, with an extensive fibre optic network covering approximately 90% of the commercial market. The company offers a strong portfolio of local data connectivity and a full suite of ICT services complemented by leading system integration capabilities.

This acquisition underlines the strong investment track record of MBK Partners and TPG in the TMT sector. MBK Partners has a long track record investing in Asian TMT assets, including in China Network Systems, Gala TV, Invoice, C&M and Yayoi. TPG has invested in a wide range of leading telecom companies across the globe and Asia, including Hanaro Telecom, Asia Netcom (now known as Pacnet), Japan Telecom (now known as Softbank Telecom), Avaya and Apollo Towers.

Teck Chien Kong, Partner of MBK Partners said,

“We are very impressed with Wharf T&T's successful track record of establishing a client base of over 50,000 enterprises in Hong Kong and of building a leading ubiquitous fiber network in Hong Kong, reflecting the quality and commitment of its management team and employees.”

Ricky Lau, Partner of TPG added,

“We are excited to invest in Wharf T&T and look forward to partnering with the existing management team in providing world class technologies and internet services to enterprise customers in Hong Kong.”

Mr Stephen Ng, Chairman and Managing Director of The Wharf (Holdings) Limited commented:

“Wharf initiated a strategic review for our CME business earlier this year to evaluate different options to enhance their value. As a result, we are pleased to have entered an agreement with MBK and TPG for them to acquire the Wharf T&T business. Both MBK and TPG have extensive investment experience in telecommunication assets around the world. We believe that Wharf T&T will be best positioned to achieve its next phase of growth and development after the acquisition.”