Residential broadband provider HKBN to buy WTT HK in $10.5b deal

The private equity firms that own WTT would own around 11.66% stake each in HKBN.

Reuters reports that Hong Kong’s second largest provider of residential broadband services HKBN is buying fixed-line operator WTT HK in a deal that would value the business at $10.5b (US$1.34b)

As part of the deal, HKBN will issue the private equity firms TPG Capital Management LP and MBK Partners Inc. that own WTT, a combination of its shares and vendor loan notes for WTT shares worth roughly $5.5b.

MBK Partners and TPG would end up owning 11.66% stake each in HKBN, in addition to a non-voting, couponless vendor loan note valued at $970.5m once the deal closes.

Here’s more from Reuters: