HKBN sale stalls amid market volatility

A sale of local telecommunications provider Hong Kong Broadband Network (1310) 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. While the deal has been put on hold for now, it could resume once conditions improve, they said.

KKR and PAG were among suitors considering bids for HKBN.

Shares of HKBN have fallen more than 4 percent this year in Hong Kong, giving it a market value of about HK$11.9 billion.

Separately, Chinese podcasting startup Ximalaya is pushing back the launch of its planned initial public offering in Hong Kong, in an abrupt change of heart amid market volatility, people familiar with the matter said.

The Shanghai-based company was speaking with potential cornerstone investors in recent days and was considering to start taking orders as soon as next week to raise US$100 million (HK$780 million) if talks go well, Bloomberg News reported earlier.

It has now decided to hold off until September at the soonest, the people said.