Hong Kong residential broadband services and enterprise solutions provider HKBN Ltd. announced a proposed merger with WTT Holding Corp (WTT), an enterprise-focused fixed telecommunication services operator with extensive fixed-line infrastructure in Hong Kong. The merger is pursuant to HKBN’s purchase of all WTT shares in exchange for issuing a combination of HKBN shares and vendor loan notes to MBK Partners and TPG, joint owners of WTT.
The merger seeks to enhance service capabilities, diversify business portfolios, and improve quality of service offerings to enterprise customers through increased footprint and capacity. Along with combining complementary business focuses, the transaction provides significant value creation opportunities through synergies of combined cost efficiencies and cross-selling across a larger customer base, HKBN believes.
“We are excited to have announced this pro-competitive transaction,” says William Yeung, co-owner and chief executive officer at HKBN, “and look forward to delivering benefits to customers from the enriched product offerings and the expanded networks of the merged entity.”
The transaction, expected to close by first quarter 2019, is conditional on HKBN shareholder and regulatory approval.
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