China Mobile explores acquiring Hong Kong telecom firm HKBN -sources

China Mobile

18/04/2023 05:39

By Kane Wu and Julie Zhu
       HONG KONG, April 18 (Reuters) - State-owned China Mobile
Ltd  0941.HK  is exploring a potential buyout of Hong Kong's
leading telecoms company HKBN Ltd  1310.HK , which is currently
valued at $1 billion, four people with knowledge of the matter
said.
    China Mobile in recent weeks sent a request for proposal
(RFP) to a small group of banks to advise on acquiring and
taking-private the Hong Kong telecom provider, which offers
services including broadband and Wi-Fi management, said the
people. 
    The Beijing-based company is still receiving pitches from
investment banks and has yet to decide on making a formal offer,
said the people, declining to be identified as the information
is confidential.
    HKBN had a market value of HK$7.94 billion ($1.01 billion)
as of Tuesday morning's market close.
    Bidders are generally expected to offer a premium to the
company’s current trading share price.
    China Mobile and HKBN did not immediately respond to a
request for comment. 

($1 = 7.8498 Hong Kong dollars)

 (Reporting by Kane Wu and Julie Zhu in Hong Kong; addiitonal
reporting by Donny Kwok; Editing by Sumeet Chatterjee and Sonali
Paul)
 ((kane.wu@thomsonreuters.com; +85228436590; Reuters Messaging:
kane.wu.thomsonreuters.com@reuters.net))