(Bloomberg) — KKR & Co. 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 speaking to advisers as they conduct due diligence on HKBN, the people said, asking not to be identified because the matter is private.
Shares of HKBN rose as much as 6.4% and hit their highest level since Feb. 24 in Hong Kong on Thursday, giving it a market value of about $1.7 billion. The company’s enterprise value stands at around $3 billion, according to data compiled by Bloomberg.
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.
The company has also attracted initial interest from Stonepeak, the people said. The potential deal for HKBN 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.
Representatives for HKBN, PAG and Stonepeak declined to comment, while a spokesperson for KKR didn’t immediately respond to requests for comment.
In 2018, HKBN announced an all-stock merger with WTT, the enterprise-focused fixed telecom provider then owned by TPG and MBK. It was completed the following year.
(Updates with share price move in third paragraph.)
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