Wharf T&T said to attract at least seven bidders
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At least seven companies, including HKBN and SmarTone, have submitted bids for Wharf Holdings’ Hong Kong telecoms division Wharf T&T, according to reports.
The private equity copanies including KKR, MBK Partners and TPG Capital Management have also submitted bids for the company.
The sale is looking likely to reach a price of $1 billion to $1.2 billion, according to the report. HKBN is currently the front-runner in the auction, but may face antitrust scrutiny and will require shareholder approval for the purchase, so its bid is less certain than others’.
Wharf T&T is Hong Kong’s second largest enterprise fixed line telecoms operator in Hong Kong, and also has subsidiaries providing residential broadband, eBusiness and IT services.
Parent company Wharf Holdings put its telecoms business up for sale in June following a strategic review of its communications, media and entertainment division.
Last year Wharf T&T generated an ebitda of around $100 million, the sources said.
Questions & Answers
Q.Which companies have submitted bids for Wharf T&T?
Which companies have submitted bids for Wharf T&T?
At least seven companies have submitted bids, including HKBN, SmarTone, KKR, MBK Partners, and TPG Capital Management. These include both telecom operators and private equity firms.
Q.What is Wharf T&T's primary business in Hong Kong?
What is Wharf T&T's primary business in Hong Kong?
Wharf T&T is Hong Kong’s second largest enterprise fixed line telecoms operator. It also has subsidiaries offering residential broadband, eBusiness, and IT services.
Q.Why might HKBN's bid for Wharf T&T be uncertain?
Why might HKBN's bid for Wharf T&T be uncertain?
HKBN, currently the front-runner, may face antitrust scrutiny if its bid is successful. The purchase will also require approval from its shareholders, adding to the uncertainty.
Q.What was Wharf T&T's EBITDA last year?
What was Wharf T&T's EBITDA last year?
Sources stated that Wharf T&T generated an EBITDA of approximately $100 million last year. This figure comes from the reports cited in the article.