Hong Kong's HKBN To Be Taken Over by HGC Global at USD 1B Valuation

Shares of Hong Kong telco HKBN Ltd rose as much as 6 per cent on Thursday after it confirmed it had received takeover interest from infrastructure investor I Squared Asia Advisors.

HKBN said it received a non-binding letter of interest from the infrastructure investor, which owns HGC Global Communications, in which I Squared Asia Advisors said it was considering making an offer for HKBN.

HKBN shares jumped nearly 12 per cent on Tuesday before trading was halted. After resumption on Thursday, the stock was trading up 1.8 per cent in the afternoon session while the broader Hang Seng Index slipped 0.8 per cent.

The provider of telecommunication services such as broadband and Wi-Fi management said it had not reached an agreement and would pursue further talks with the party.

"The company intends to engage in further discussions with the potential offerer, but has not formed any view about the possible offer," HKBN said in a Hong Kong Stock Exchange filing.

An offer, if it proceeds, may be "consummated through HGC Global Communications Limited and/or one of its affiliates", HKBN said.

It was reported on Tuesday, citing sources, that HGC Global Communications Ltd has lodged a takeover offer that could value HKBN at more than $1 billion.