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Wharf Holdings
TechEnterprises

Update | Fast-track disposal of i-Cable stake tipped for Hong Kong’s Wharf

Move would follow HK$9.5b buyout of telecoms unit Wharf T&T by private equity firms MBK Partners and TPG

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Banners advertising Wharf Holdings' i-Cable internet business are displayed on a street in Hong Kong. Photo: Reuters
Bien Perez

Property giant The Wharf (Holdings) may step up the sale of its interest in struggling pay-television operator i-Cable Communications, following the acquisition of its fixed-line telecommunications business by private equity firms MBK Partners and TPG for HK$9.5 billion in cash.

In a filing with the Hong Kong stock exchange on Wednesday, hours after that deal for Wharf T&T was announced, i-Cable said parent Wharf and the company “continues to assess proposals from various independent third parties” about an acquisition.

Speculation was rife, however, that the Wharf group could strike a deal sooner than later.

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“If I’m doing the deal, I’m doing it right now because who knows what will happen next year,” Alfred Lau, an analyst at Bocom International, told the South China Morning Post.

“What i-Cable and Wharf T&T have in common is that these are both well-established businesses with steady income, which appeals to private equity companies and other investors looking for such opportunities.”

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Wharf, a subsidiary of Wheelock and Company, started its communications, media and entertainment business segment more than 20 years ago. This segment, composed of Wharf T&T and i-Cable, accounted for 9 per cent of Wharf’s HK$40.87 billion total revenue last year.
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