Hong Kong broadband buyout has a lot on the line

HKBN

22/01/2025 01:56

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Chan Ka Sing
       HONG KONG, Jan 22 (Reuters Breakingviews) - State-owned
China Mobile is buying internet provider HKBN for $900 mln, the
latest example of mainland firms expanding their presence in the
city. But a US fund may lob in a higher offer. If and how a
bidding war unfolds will show how open the financial hub is to
Western capital.

    Full view will be published shortly.
    
    CONTEXT NEWS
   Miami-based infrastructure investment firm I Squared Capital
is weighing an offer for Hong Kong-listed broadband operator
HKBN, Reuters reported on January 15, citing two people with
knowledge of the deal. 
    State-owned telecommunication firm China Mobile made an
offer in December that would value HKBN at HK$6.86 billion ($882
million), or HK$5.23 per share. I Squared Capital’s offer is set
to trump that, Reuters reported, but the private equity firm is
not keen to pay more than HK$6 per share.

 (Editing by Robyn Mak and Aditya Srivastav)
 ((For previous columns by the author, Reuters customers can
click on  CHAN/  
KaSing.Chan@thomsonreuters.com))