A sale of HKBN Ltd. has stallled again as the Hong Kong broadband provider's owners couldn t agree with potential buyers on a valuation, according to people familiar with the matter.
I Squared had engaged with banks to help advise and finance a potential offer, the people said, asking not to be identified as the information is confidential. discussions between HKBN and the potential suitors are on hold for now, as they haven't been able to bridge the differences over valuation. The seller's attempts to find other interested candidates have not resulted in any additional formal offers, the people said.
No final decision has been made, the people said, and HKBN could attract other suitors in the future.
The halt is almost a year after sale talks broke down, with potential buyers citing valuation and market volatility among their chief concerns, Bloomberg News reported.
HKBN provides 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's GIC Pte. In March, the board of HKBN received a preliminary nonbinding letter from I Squared saying it was interested in pursuing a transaction involving a potential offer by HGC Global Communications Ltd., a fixed-line operator that owns infrastructure in Hong Kong and abroad.
A takeover by HGC would likely draw the scrutiny of regulators. HKBN's acquisition of WTT, another fixed-line operator, was cleared by the Hong Kong Communications Authority in 2019 after the two companies agreed to resolve competition issues the watchdog had identified.
The shares of HKBN have risen more than 2% this year, valuing it at around $840 million.
Representatives for HKBN, I Squared and TPG declined to comment, while MBK Partners did not immediately respond to a request for comment.