Deacons has advised The Wharf (Holdings) Limited on the disposal of its telecoms unit, Wharf T&T Limited to private equity firms MBK Partners and TPG for a total consideration of HK$9.5 billion in cash.
Wharf T&T is Hong Kong’s largest purely enterprise-focused telecoms service provider, with an extensive fibre optic network covering approximately 90% of the commercial market.
The disposal of Wharf T&T is a result of Wharf’s strategic review of its communication, media and entertainment (CME) business segment. After the sale, Wharf’s CME business will primarily consist of i-CABLE Communications Limited, a pay-tv platform. The transaction is expected to complete on or before November 23 2016.
Wharf is a subsidiary of Wheelock and Company Limited, and the companies are expected to gain HK$4.5 billion and HK$7.4 billion respectively from the sale of the telecoms business.
This is the largest M&A deal in the Hong Kong telecommunications industry since the acquisition of CSL New World Mobility Limited by HKT Limited in 2014.
Deacons’ cross practice team was led by corporate finance head Ronny Chow, and supported by associates Maynard Leung and Doris Leung. The transaction also involved the real estate, intellectual property, litigation and corporate services practices.
Ronny, head of corporate finance, said:
“Wharf has been one of our key clients for many years. We are excited to have the opportunity to advise Wharf in this high profile and very interesting assignment. This corporate transaction involves a range of legal issues and complexities, and I believe this deal showcases Deacons’ strong capability in providing effective and efficient one-stop services to our clients.”