HKBN CEO Says China Mobile's Takeover Offer Undervalues Company
China Mobile Ltd.'s takeover offer for HKBN Ltd. undervalues the company, according to the Hong Kong broadband provider's top executive.
'I can swear to you, it does not reflect the value we deserve,' HKBN Chief Executive Officer and co-founder William Yeung said in an interview with Bloomberg News on Monday.
China Mobile in December made a general offer to buy all of HKBN's shares for HK$5.23 each in cash, valuing the company at about HK$6.86 billion . In April, the state-owned company bought a 15.5% holding in HKBN from buyout firm TPG Inc.
HKBN had also attracted interest from suitors including I Squared Capital. The US investment firm's potential takeover offer hit a snag after it struggled to convince China's sovereign wealth fund of the merits of a deal, Bloomberg has reported.
I Squared already owns broadband operator HGC Global Communications Ltd., where China Investment Corp. is a minority investor, and wanted to combine it with HKBN but couldn't get approvals from CIC to move forward with a formal offer for HKBN, people with knowledge of the matter have said.
'We don't need to rush,' into a deal, said Yeung, adding that the business is growing at a faster pace than that of its competitors. 'I am very upbeat,' he said.
The executive said he has received many inquiries from business partners who are requesting HKBN to respect the terms and conditions of their contracts.
'I must be very careful with our operation,' he said. 'We cannot leak any data related to our contract with them to China Mobile, and we are honoring that commitment as of today as we are still in control.'
This article was generated from an automated news agency feed without modifications to text.
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