HKBN Ltd. confirmed private equity firm I Squared Capital has expressed interest in the Hong Kong telecommunications provider that could involve a possible offer for the company.
(Bloomberg) — HKBN Ltd. confirmed private equity firm I Squared Capital has expressed interest in the Hong Kong telecommunications provider that could involve a possible offer for the company.
The board of HKBN has received a preliminary non-binding letter from I Squared stating its interest in pursuing a transaction involving a potential offer, through HGC Global Communications Ltd., according to an exchange filing on Thursday, confirming an earlier Bloomberg News report.
The Hong Kong-listed company plans to engage in further discussions with I Squared and hasn’t formed any view about the potential bid nor any agreement, it said in the filing.
HGC, fully owned by I Squared, has lodged an offer for HKBN that could value the company at more than $1 billion, Bloomberg News reported on Tuesday. The new potential offer comes after a sale was put on hold last year as prospective buyers expressed concerns over valuation amid market volatility. KKR & Co. and PAG were among suitors considering bids at the time, Bloomberg News has reported.
Shares of HKBN jumped as much as 6.1% after trading resumed on Thursday in Hong Kong. The stock surged by the most in seven weeks on Tuesday after the Bloomberg News report and was suspended late afternoon that day, pending an inside information announcement.
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 major shareholders include buyout firms TPG Inc. and MBK Partners as well as Singapore’s GIC Pte.
HGC is a fixed-line operator that owns infrastructure in Hong Kong and overseas, providing services including telecom, data centers and broadband, according to its website. The company was founded in 1995 and was formerly known as Hutchison Global Communications Ltd. I Squared Capital bought the company in 2017 for HK$14.5 billion ($1.85 billion).
(Updates share move in fifth paragraph.)
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