Dear Friends of HKBN

Release of Public Circular for HKBN’s Proposed Acquisition of JOS

We are pleased to highlight the release of our public circular today on the acquisition of JOS. Please click here for the related links:

The Group’s strategy for long term value creation

GROWTH: Organic x M&A

Almira Chan, Co-Owner* and Chief Strategy Officer of HKBN, and former CFO of WTT said, “This transaction leapfrogs HKBN’s transformation from a telecom carrier to a fully integrated Information and Communications Technology (ICT) powerhouse with revenue upside from cross-selling.

JOS is a standalone system integration company with around 3,000 active customers in Hong Kong. The integration with HKBN will lift that customer base to a combined total of over 100,000. That means for every two active enterprises in Hong Kong, one of them can be reached by JOS. Because the majority of the base comprises small to medium sized businesses, the productisation of JOS’s ICT solutions will definitely create value to this segment by delivering affordability while creating huge AFF accretion to 1-HKBN.”

EXPANSION: Horizontal x Vertical

The integrations with New World Telecom (NWT) and WTT took place in 2016 and 2019 respectively. They are the horizontal expansion empowering HKBN with a tri-carrier network diversity advantage and JOS is the vertical expansion that builds our IT capabilities to become a true one-stop ICT solutions provider.

Our Merger Integration Team (MIT) has a proven track record of successful business integration. It took us 9 months to complete the NWT integration and only 5 months for WTT. The latter had 56,000 enterprise customers and was the 2^nd largest telecom operator in the enterprise market segment. The 3 top executives of JOS have agreed to invest more than 12 months’ salary to put their “skin in the game” and to co-lead the MIT for a smooth and effective integration.

* Committed to investing 1-year salary into the upcoming Co-Ownership Plan III Plus.