Wharf Holdings to sell telecom business to TPG Capital and MBK Partners for $1.22 bn

Wharf Holdings Ltd, run by Hong Kong tycoon Peter Woo, yesterday struck a deal to sell its telecom business Wharf T&T to a consortium of private equity firms TPG Capital Management and MBK Partners for $1.22 billion (HK$9.5 billion).

The sale comes seven months after Wharf said that it was conducting a strategic review of its communications, media and entertainment arm in order to focus on its core property development and investment businesses.

The sale does not include its i-Cable Communications, which is also part of the communications, media and entertainment business. Wharf said a strategic review of i-Cable was not completed. Upon completion of the sale, Wharf's communications business will comprise mainly of i-Cable Communications.

Wharf T&T is Hong Kong's largest telecom service provider, with an extensive fibre optic network covering about 90 per cent of the commercial market.

It has a portfolio of local data connectivity and a full suite of information and communications services complemented by system integration capabilities.
Demand for its data transmission and high-speed internet service for corporate clients saw its operating profit rise by 24 per cent from a year earlier to HK$214 million.

The deal, which is subject to regulatory approval, is expected to close in November.