Private equity firm I Squared Capital has started due diligence on Hong Kong-listed HKBN, while Shanghai-listed Beijing Tongyizhong may buy a 75.8% stake in X-Fiper New Materials for over $33 million.
I Squared Capital starts due diligence on HKBN
PE firm I Squared Capital has commenced due diligence on Hong Kong broadband internet services provider HKBN, Bloomberg reported on Wednesday citing people familiar with the matter.
The US infrastructure investor plans to analyse HKBN’s financials and assets in the coming weeks before making a decision on whether to make an offer. That would put HKBN in the centre of a bidding war between the US-based PE firm and state-owned China Mobile, which offered to acquire all HKBN shares at around HK$5.23 each in cash on December 2, valuing the firm at around HK$6.9 billion ($882.2 million).
As HKBN confirmed receiving I Squared Capital’s non-binding indication on December 2 for a possible takeover, the US PE firm could propose a price range of HK$5 to HK$6 per HKBN share, per the Bloomberg report, citing people familiar with the matter, though considerations are ongoing and no final decision have been made.
Beijing Tongyizhong to buy 75.8% in X-Fiper for over $33m
Shanghai-listed Beijing Tongyizhong New Material Technology plans to buy a 75.8% stake in X-Fiper, a maker of aramid fibres and papers, for around 242.5 million yuan ($33.4 million), according to an exchange filing.
Post the transaction, Tongyizhong, which specialises in the production of ultra-high-molecular-weight polyethylene (UHMWP) fibres and composite materials, will see X-Fiper becoming its subsidiary.
The transaction will help Tongyizhong to gain access to new market verticals, according to a release published by the deal’s exclusive financial advisor BDA Partners on Wednesday.
