Add-on Acquisition • Communications

HKBN Acquires WTT HK

On April 30, 2019, HKBN acquired communications company WTT HK from MBK Partners and TPG

Acquisition Context
  • This is HKBN’s 1st transaction in the Communications sector.
  • This is HKBN’s 2nd transaction in China.

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M&A Deal Summary

Date April 30, 2019
Target WTT HK
Sector Communications
Buyer(s) HKBN
Sellers(s) MBK Partners
TPG
Deal Type Add-on Acquisition
Advisor(s) Goldman Sachs (Financial)
Latham & Watkins
Clifford Chance (Legal)

Target Company

WTT HK

Hong Kong, China
WTT HK Ltd. is the only enterprise-focused fixed telecommunication services operator with significant fixed-line infrastructure in Hong Kong. WTT has already invested over HK$7 billion in its network to create a leading fiber-optic end-to-end network in Hong Kong covering more than 5,500 commercial buildings. Together with a robust in-house service engine offering a comprehensive range of ICT products and bespoke services, WTT is a trusted partner of its diverse base of over 56,000 business customers serving their mission-critical needs.
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Buyer Overview 1

Buyer

HKBN

Hong Kong, China

Category Company
Founded 1992
Sector Communications
Employees3,741
Revenue 10.7B HKD (2024)
DESCRIPTION

HKBN is an integrated telecommunications services company, provides broadband, local telephony, IDD, and IP-TV services to business and residential markets in Hong Kong. It offers broadband, telephony, entertainment, integrated Web, facility management, 2b app, multi-protocol label switching, Internet access, and fibre-to-the-office technology services. HKBN was founded in 1992 and is headquartered in Hong Kong, China.


Deal Context for Buyer #
Overall 2 of 3
Sector: Communications 1 of 1
Type: Add-on Acquisition 2 of 3
Country: China 2 of 3
Year: 2019 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-05-30 I Consulting Group

Hong Kong, China

I Consulting Group Ltd. is a managed service provider (MSP) in cloud powered solutions. I Consulting Group Ltd. was established in 2003 and is based in Hong Kong.

Buy HK$200M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-13 Jardine OneSolution Holdings

Kowloon, China

Jardine OneSolution Holdings (C.I.) Ltd. is a systems integrator, solutions provider and technology consultancy with deep industry knowledge and an exceptional ability to execute. JOS has extensive experience across a range of industries, boasting more than 10,000 private and public sector customers in Asia, and core capabilities in artificial intelligence, big data, cloud computing, enterprise applications, enterprise security, internet of things (IoT), mobility and next-generation infrastructure. Jardine OneSolution Holdings (C.I.) Ltd. was established in 1950 and is based in Kowloon, Hong Kong.

Buy -

Seller Profiles 2

SELLER

MBK Partners

Hong Kong, China

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 30.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

MBK Partners is a private equity firm focused on opportunities throughout Northern Asia (Korea, Japan, China, and Taiwan). MBK specializes in a variety of transactions, including management buy-outs, corporate divestitures, take privates, and add-on acquisitions and will consider both majority and minority positions. Sectors of interest include telecommunication/media, financial services, heavy industrials, consumer, pharmaceuticals, and business services. MBK Partners was formed in 2005 and is based in Hong Kong. The Firm has additional offices in Seoul, Tokyo, and Shanghai.


Deal Context for Seller #
Overall 17 of 21
Sector: Communications 2 of 2
Type: Add-on Acquisition 9 of 11
Country: China 4 of 5
Year: 2019 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-22 Coway

Seoul, South Korea

Coway has been dedicated to researching & developing solutions to combat Air Pollution problem. Coway has progressively improved lives of millions of individuals by offering unique Air Purifiers with Patented Filtration Technology. Coway was founded in 1989 and is based in Seoul, South Korea.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-03 Godiva Japan

Tokyo, Japan

Godiva Japan is a chocolate brand, with a global footprint in over 100 countries. Godiva Japan is Godiva’s second largest market, with 286 shops across the nation. Godiva Japan was founded in 1994 and is based in Tokyo, Japan.

Buy -
SELLER

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 296.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


Deal Context for Seller #
Overall 196 of 278
Sector: Communications 12 of 14
Type: Add-on Acquisition 71 of 96
Country: China 7 of 8
Year: 2019 4 of 14
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-30 HKBN

Hong Kong, China

HKBN is an integrated telecommunications services company, provides broadband, local telephony, IDD, and IP-TV services to business and residential markets in Hong Kong. It offers broadband, telephony, entertainment, integrated Web, facility management, 2b app, multi-protocol label switching, Internet access, and fibre-to-the-office technology services. HKBN was founded in 1992 and is headquartered in Hong Kong, China.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-07 Trevi Therapeutics

New Haven, Connecticut, United States

Trevi Therapeutics is a clinical-stage biotechnology company focused on the development and commercialization of Haduvio to treat serious neurologically mediated conditions. Trevi Therapeutics was formed in 2011 and is based in New Haven, Connecticut.

Sell -