KKR, HKBN place final bids for Wharf's HK telecom unit -sources

i-CABLE Communications

07/09/2016 05:08

HONG KONG, Sept 7 (Reuters) - KKR & Co LP  KKR.N  and HKBN 
Ltd  1310.HK  have placed final bids for the Hong Kong telecom 
arm of Wharf Holdings Ltd  0004.HK , in a deal likely to fetch 
$1 billion to $1.2 billion, people familiar with the matter told 
Reuters. 
    MBK Partners and TPG Capital Management LP  TPG.UL  have 
also made a joint bid for Wharf T&T, which has also drawn a bid 
from SmarTone Telecommunications Holdings Ltd  0315.HK , these 
people said. 
    Last year, Wharf T&T generated about $100 million in 
earnings before interest, tax, depreciation and amortisation 
(EBITDA), the people said. 
    Three more suitors submitted bids last week, said one of the 
sources, who declined to be identified as they were not 
authorised to speak publicly on the matter. 
    Two of the people said the auction front-runner was telecom 
firm HKBN, whose biggest shareholder is Canadian pension fund 
CPPIB. But HKBN would face antitrust scrutiny as well as a 
shareholder vote on the deal due to the size of the target 
asset, rending its bid uncertain, they said. 
    KKR, HKBN, MBK, TPG and Wharf declined to comment. SmarTone 
did not provide an immediate comment. 
    Wharf Holdings, backed by Hong Kong tycoon Peter Woo, owns 
Hong Kong marquee properties including the Times Square and 
Harbour City shopping malls. Last year, it launched a strategic 
review of its communications, media and entertainment division. 
    The division includes Wharf T&T - Hong Kong's second-largest 
business fixed-line operator, according to the firm's website - 
and television broadcaster I-Cable Communications Ltd  1097.HK . 
    Some bidders have also made offers to buy I-Cable, though it 
was unclear whether Wharf would sell the money-losing 
broadcaster, the people said. 
 
 (Reporting by Denny Thomas and Sumeet Chatterjee; Additional 
reporting by Prakash Chakarvarti; Editing by Christopher 
Cushing) 
 ((denny.thomas@thomsonreuters.com; +852 2843 6358; Reuters 
Messaging: denny.thomas.thomsonreuters.com@reuters.net)) 
 
Keywords: WHARF HOLDINGS TELECOMS/M&A