Private equity fund managers MBK Partners and TPG have agreed to exit China-based fixed telecommunication services operator Wharf T&T (WTT) to Hong Kong-listed broadband services provider HKBN for an enterprise value of HKD10.5 billion (approximately US$1.3 billion). MBK and TPG will each receive shares in HKBN worth HKD1.8 billion (approximately US$226 million), representing a 10.34 percent stake, as well as HKD970 million (approximately US$124 million) in convertible vendor loan notes. MBK and TPG originally invested HKD9.5 billion (approximately US$1.2 billion) in WTT in 2016. The transaction, which is expected to close by Q1 2019, is subject to shareholder and regulatory approval and closing conditions.