MBK Partners and TPG to Acquire Wharf T&T from Wharf
October 4, 2016, Hong Kong – MBK Partners, North Asia’s largest independent buyout firm, and TPG, a leading global alternative asset firm, announced today 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.
Wharf T&T is Hong Kong’s largest purely enterprise-focused telecom service provider, 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.
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.”
“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,” Mr Stephen Ng, Chairman and Managing Director of The Wharf (Holdings) Limited commented. “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.”
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.
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About MBK Partners
Established in March 2005, MBK Partners is a leading local and independent North Asian private equity firm focusing on the rapid development of private equity markets in Japan, Korea and China. With investor contributions from domestic/international public pensions, company pensions, university funds, government, etc., the company has about US$10.1 billion in capital and is providing business support for positive corporate value expansion by investing in a wide range of industries for both medium and large companies, including communications/media, financial services, retail/consumer goods, business services, transport, and manufacturing. MBK Partners has a long track record investing in Asian telecom assets.
Further information about MBK Partners can be found at www.mbkpartnerslp.com.
TPG is a leading global private investment firm founded in 1992 with over USD70 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Singapore and Tokyo. TPG’s investment platforms are across a wide range of asset classes including private equity, growth venture, real estate, credit and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of their portfolio. The firm’s investments span a variety of industries including financial services, travel and entertainment, technology, energy, industrials, retail, consumer, real estate, media and communications, and healthcare.
Further information about TPG can be found at www.tpg.com.
About The Wharf (Holdings) Limited
Founded in 1886, The Wharf (Holdings) Limited (Stock code: 4) is a premier company listed in Hong Kong. It is a subsidiary of Wheelock and Company Limited. Wharf is active in Hong Kong and China with prime real estate as primary strategic focus. Site acquisition, development and marketing are its core competencies while mall development and retail management remain its strategic differentiation. Investment Properties including flagships Harbour City and Times Square is the backbone of Wharf’s business model. The portfolio continues to grow and has been a key growth driver for the Group with addition of five International Finance Squares in China. Wharf’s mission of Building for Tomorrow underlines the Group’s asset expansion programme. Its China land bank is maintained at 7.5 million square metres spanning 15 cities. The Group now operates 14 hotels in the Asia Pacific region and is set to expand the portfolio with a solid pipeline of new hotels over the next few years. Also contributing to Wharf’s presence in the Mainland are key port assets along the China coast. Wharf website: www.wharfholdings.com.
The Wharf (Holdings) Limited