Hong Kong telecommunications provider HKBN Ltd. has received a takeover offer from HGC Global Communications Ltd. that could value the company at more than $1 billion, according to people familiar with the matter.
(Bloomberg) — Hong Kong telecommunications provider HKBN Ltd. has received a takeover offer from HGC Global Communications Ltd. that could value the company at more than $1 billion, according to people familiar with the matter.
HGC, owned by private equity firm I Squared Capital, has lodged an offer for the Hong Kong-listed company, said the people, who asked not to be identified as the information is private.
Shares of HKBN jumped as much as 13%, their biggest advance in seven weeks, after the Bloomberg News report. The stock is still down 44% in the past 12 months, giving the company a market value of about HK$7.2 billion ($922 million).
The new offer comes after a sale was put on hold last year as potential buyers expressed concerns over valuation amid market volatility. KKR & Co. and PAG were among suitors considering bids at the time, Bloomberg News has reported.
The asset could also draw interest from Chinese companies or funds backed by the government as the country steps up scrutiny of sensitive technology-related assets and tightens oversight over data security, the people said.
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 full-fledged telecom, data center 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.
Deliberations are ongoing and might not lead to a transaction, the people said. A representative for MBK declined to comment, while representatives for HGC, HKBN, I Squared and TPG didn’t immediately respond to requests for comment.
(Updates HKBN share price in the third paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.