I Squared Capital eyes $1bn bid for Hong Kong’s HKBN amid competitive sale process

I Squared Capital, a US-based investment firm managing over $40bn in assets, is preparing a potential $1bn bid for Hong Kong Broadband Network.

The offer is expected to surpass a previous bid from China Mobile, which valued HKBN at HKD5.23 per share. I Squared Capital’s bid may go as high as HKD6 per share, sources report, but the timeline for submission remains flexible.

The competitive sale process reflects growing interest in HKBN, a leading provider of internet, data centre, and WiFi services. China Mobile, the world’s largest wireless carrier, made an initial offer in December to expand its presence beyond mainland China. I Squared Capital’s bid would introduce a new layer of competition, with the firm reportedly considering a non-cash component to strengthen its proposal.

HKBN, founded in 1999, gained prominence with its $1.34bn acquisition of fixed-line operator WTT in 2018. Private equity firms MBK Partners and TPG, former owners of WTT, became shareholders following the deal and are now looking to exit via the current sale process.

Once valued at its peak in April 2020, HKBN has seen its market capitalisation drop by 65%. The company currently trades at HKD5.25 per share, reflecting a value of $883m. I Squared Capital’s renewed interest comes after earlier discussions for a buyout in 2023 failed to materialise.

The outcome of this competitive sale process will be closely watched, with both bidders eyeing HKBN’s strategic importance in Asia’s telecommunications market.

Source: Private Equity Wire

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