(Bloomberg) — Stonepeak and PAG are among suitors considering bids for Hong Kong telecommunications provider HKBN Ltd., according to people familiar with the matter.
The private equity firms have been working with advisers to conduct due diligence on HKBN, the people said, asking not to be identified because the matter is private.
Shares of HKBN are little changed in Hong Kong trading this year, giving the business a market capitalization of about $1.6 billion.
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 Wifi connectivity. The company’s major shareholders include buyout firms TPG and MBK Partners.
The potential deal comes amid booming demand for infrastructure assets globally.
Deliberations are at an early stage, and there’s no certainty the funds will proceed with formal bids, the people said.
Challenging financing markets and stock market volatility could still weigh on a potential deal, the people said.
A representative for PAG declined to comment, while spokespeople for HKBN and Stonepeak didn’t immediately respond to requests for comment.
In 2018, HKBN announced an all-stock merger with WTT, the enterprise-focused fixed telecoms provider then owned by TPG and MBK.
It was completed the following year.
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