“China Mobile Eyes HKBN in Billion-Dollar Broadband Expansion Push”
China Mobile, the world’s largest wireless carrier by subscribers, is reportedly in advanced talks to acquire Hong Kong broadband provider HKBN, signaling an aggressive expansion into the city’s telecom market.
Negotiations in Progress
State-backed China Mobile has been holding discussions with HKBN’s primary shareholders, including buyout firms MBK Partners and TPG. Sources close to the matter suggest China Mobile is prepared to pay at least HK$5 per share, valuing HKBN at more than HK$6.5 billion (S$1.1 billion). The carrier has already conducted due diligence, but negotiations remain ongoing, with MBK and TPG reportedly pushing for a higher valuation.
HKBN, one of Hong Kong’s leading broadband providers, has seen its shares rise 24% this year, bringing its market value to about HK$5.7 billion. The company provides a suite of services, including internet, telecom, data center, and Wi-Fi solutions, making it a strategic target for China Mobile’s growth ambitions.
Potential Competitive Bidding
China Mobile isn’t the only contender for HKBN. Private equity firms, including IDG Capital and I Squared Capital, have previously shown interest but failed to reach agreements due to valuation differences. Analysts speculate that the ongoing talks could attract additional suitors, creating a competitive bidding environment.
Representatives from China Mobile, HKBN, MBK Partners, and TPG have declined to comment on the discussions, leaving the market buzzing with speculation.
Strategic Expansion in Hong Kong
If successful, the acquisition would bolster China Mobile’s foothold in Hong Kong, where it is also reportedly in negotiations to purchase commercial property. The dual strategy underscores the state-owned giant’s commitment to solidifying its presence in the region, aligning with broader ambitions to diversify its service offerings beyond mainland China.
Broader Market Implications
Industry experts note that China Mobile’s interest in HKBN reflects a growing appetite for broadband expansion in Asia, fueled by increasing demand for high-speed connectivity and integrated digital services. For HKBN’s stakeholders, a sale at a premium could unlock significant value, but the final price tag remains a key sticking point.
With negotiations intensifying and rival bidders potentially re-entering the fray, the stage is set for a high-stakes battle over one of Hong Kong’s most prominent broadband players. Stay tuned as this story develops.
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