Hong Kong broadband provider HKBN Ltd. said it’s ended talks on a potential sale to private equity firm I Squared Capital.
(Bloomberg) — Hong Kong broadband provider HKBN Ltd. said it’s ended talks on a potential sale to private equity firm I Squared Capital.
HKBN and the investment firm have terminated discussions over a potential takeover offer, it said in a Hong Kong stock exchange filing Tuesday, confirming an earlier Bloomberg News report.
I Squared put negotiations on hold after it wasn’t able to bridge differences over valuation with HKBN’s major shareholders, people with knowledge of the matter said last month. Attempts to drum up other suitors also failed to gain traction, the people said.
Shares of HKBN have fallen 42% over the past 12 months, valuing the company at HK$6.7 billion ($854 million). The city’s benchmark Hang Seng Index fell 7.3% over the same period.
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The halt comes roughly a year after sale talks broke down on similar grounds, with potential buyers citing valuation and market volatility among their chief concerns, Bloomberg News reported.
HKBN offers broadband internet services to residential and corporate customers in the city. It also provides other enterprise telecom solutions, runs data centers and offers Wi-Fi connectivity. Its shareholders include buyout firms TPG Inc. and MBK Partners as well as Singapore sovereign wealth fund GIC Pte.
I Squared expressed preliminary interest in March in making a potential takeover offer through HGC Global Communications Ltd., a fixed-line operator it owns that has infrastructure in Hong Kong and overseas.
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