HK's Wharf Holdings may sell its telco assets

telecomasia.net

Hong Kong's Wharf Holdings reportedly aims to sell its telecoms assets, including Wharf T&T and i-Cable Communications, in a deal that could be worth more than $1 billion.

The company has approached more than a dozen potential buyers inviting them to submit bids for the telecom assets, Reuters reported, citing sources close to the deal.

Companies invited to submit bids include operators HKBN and SmarTone, the report states. Chinese insurers, technology conglomerate Tsinghua Unigroup and Western venture capital firms have also been invited to participate.

Wharf T&T is Hong Kong's second largest fixed line operator, while i-Cable Communications provides HFC broadband and fixed line telephony services, as well as pay TV services through subsidiary Hong Kong Cable Television Limited.

According to the sources, first round bids for the telecoms businesses are due by the end of the month.

Wharf T&T generated an ebitda of around $100 million in the most recent financial year, and the business could sell for a multiple of 10 or 11 times ebitda, according to the report. This would put the potential value of the deal at above $1 billion.

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