China Mobile in talks to buy broadband service provider HKBN

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HKBN says its board received a proposal for a cash bid from China Mobile

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A China Mobile store in Chengdu. Photo: Shutterstock

Zhang Shidongin Shanghai

Published: 4:02pm, 20 Nov 2024Updated: 4:50pm, 20 Nov 2024

China Mobile is in talks to buy broadband service provider HKBN, as the world’s largest mobile-phone carrier by subscribers seeks to expand its presence in Hong Kong.

HKBN’s board received a proposal from the Hong Kong unit of China Mobile for a cash bid to buy all the issued shares of the company, HKBN said in a statement to Hong Kong’s stock exchange on Wednesday. Discussions are ongoing and no agreement has been reached, it said.

The company’s statement came out after media reports about the deal prompted HKBN’s shares to be suspended from trading on Tuesday pending the company’s response. HKBN’s shares are up 32 per cent this year, more than double the gain achieved by the benchmark Hang Seng Index.

The company’s shares jumped 6.7 per cent to HK$4.60 on Wednesday, while China Mobile added 0.4 per cent to HK$71.30. HKBN, which is part of the Hang Seng Composite Index, has a market value of HK$6.03 billion (US$774.8 million).

“The company will make monthly announcements setting out the progress of the possible offer until an announcement of a firm intention to make an offer or of a decision not to proceed with an offer is made,” HKBN said.

China Mobile has conducted due diligence on the offer and was in talks with buyout firms MBK Partners and TPG, HKBN’s major shareholders, according to media reports. The Chinese carrier was willing to pay at least HK$5 per share for HKBN, which would amount to a bid of more than HK$6.5 billion, the reports said.