China Mobile To Take Over Hong Kong's HKBN

As per four people with knowledge of the situation, state-owned China Mobile Ltd is considering a takeover of Hong Kong's leading telecoms company, HKBN Ltd, which is currently valued at $1 billion.

According to the people, China Mobile recently sent a request for proposal (RFP) to a small group of banks for advice on acquiring and taking private the Hong Kong telecom provider, which offers services such as broadband and Wi-Fi management.

According to the people, who did not want to be identified because the information is private, the Beijing-based company is still receiving pitches from investment banks and has yet to decide whether to make a formal offer.

HKBN was worth HK$7.94 billion ($1.01 billion) as of the market close on Tuesday morning.

Bidders are generally expected to offer a premium over the current trading share price of the company.

HKBN Ltd. is a Hong Kong-based Internet, communication, and telecommunications company best known for its subsidiary Hong Kong Broadband Network Limited. HKBN, founded on August 23, 1999, is one of Hong Kong's largest residential and enterprise internet, communication, and telecommunications service providers.

HKBN, which was previously a subsidiary of City Telecom, became an independent company in 2014. In February 2019, HKBN controlled 35.8% of the residential broadband subscription market and 19.4% of the enterprise market in Hong Kong.