Wharf T&T marks up business expansion upon acquisition

MBK Partners and TPG have completed the acquisition of Wharf T&T from property giant The Wharf (Holdings) last week. The transaction values Wharf T&T at HK$9.5 billion.

The company's immediate target, Wharf T&T chief executive Vincent Ma said in a press conference last Thursday, was to increase its domestic market share to 25% from the current 17% and increase annual profit by 50%, South China Morning Post reported.

The company reported a profit after tax of HK$301 million last year, according to a regulatory filing from the Wharf group and parent Wheelock and Company.

The acquisition marked Shanghai-based MBK Partners' first investment in Hong Kong. Prior to Wharf T&T, MBK Partners has invested in some other Asian TMT assets, including in China Network Systems, Gala TV, Invoice, C&M and Yayoi.

Teck Chien Kong, partner of MBK Partners, said the company has been focusing on Asia enterprises. "We are very impressed with Wharf T&T's successful track record of establishing a client base of over 50,000 enterprises in Hong Kong and of building a leading ubiquitous fibre network in Hong Kong, reflecting the quality and commitment of its management team and employees."

Ricky Lau, Partner of TPG added, "We are excited to invest in Wharf T&T and look forward to partnering with the existing management team in providing world class technologies and internet services to enterprise customers in Hong Kong."