(Bloomberg) — A sale of Hong Kong telecommunications provider HKBN Ltd. has stalled as potential buyers expressed concerns over valuation amid market volatility, according to people familiar with the matter.
Challenges in securing financing have also diminished the prospects of a transaction, said the people, who asked not to be identified as the discussions are private.
While the deal has been put on hold for now, it could resume once conditions improve, the people said.
Rising interest rates and the war in Ukraine have spooked dealmaking globally. Royal FrieslandCampina NV’s plan to sell its Friso infant nutrition brand is also stalling amid valuation concerns, Bloomberg News reported earlier this month.
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. Its major shareholders include buyout firms TPG Inc. and MBK Partners as well as Singapore’s GIC Pte.
KKR & Co.
and PAG were among suitors considering bids for HKBN, Bloomberg News reported last month.
Shares of HKBN have fallen about 4% this year in Hong Kong, giving it a market value of about $1.5 billion.
The company’s enterprise value stands at around $3 billion, according to data compiled by Bloomberg.
Representatives for HKBN, KKR and PAG declined to comment.
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