Hong Kong’s HKBN and WTT cleared to merge

18 Apr 2019

The Communications Authority (CA) of Hong Kong has accepted commitments by HKBN and WTT Holding Corp relating to their proposed merger and the transaction is now expected to close by the end of this month. The commitments relate to access to in-building equipment belonging to the two businesses and future wholesale agreements with third-party providers.

In a statement the regulator said: ‘Having carefully considered the representations received and all relevant information available, the CA is satisfied that the revised commitments are sufficient to effectively address its competition concerns in relation to the proposed transaction. The CA has decided to accept the revised commitments and not to commence an investigation.’

In August last year HKBN announced a HKD10.5 billion (USD1.3 billion) deal to acquire local business services provider WTT Holding. HKBN has agreed to conditionally purchase all of WTT’s shares in exchange for issuing a combination of HKBN shares and vendor loan notes to WTT’s joint owners, MBK Partners and TPG. After the completion of the merger MBK and TPG will hold around 11.66% of HKBN’s shares.

Hong Kong, Hong Kong Broadband Network (HKBN), WTT (formerly Wharf T&T)