China Mobile Launches Up to HK$7.8 Billion Takeover Offer for HKBN

MT Newswires Live12-03

China Mobile's (HKG:0941, SHA:600941) Hong Kong unit launched an offer to acquire broadband service provider HKBN (HKG:1310) for as much as HK$7.79 billion.

The Chinese wireless carrier is offering to pay HK$5.23 for each of HKBN's 1.3 billion outstanding shares for a total of HK$6.86 billion.

It will also pay the same price for unvested share units and vendor loan notes, raising the takeover bid by HK$937.7 million, according to a Monday filing with the Hong Kong Exchange.

The offer is 7.6% higher than HKBN's closing price of HK$4.86 on Nov. 29, the filing said.

The deal is seen to help China Mobile grow its market presence in Hong Kong.

The takeover bid comes after HKBN received a non-binding preliminary indication of interest from I Squared Capital. The private equity firm intends to acquire all outstanding shares of HKBN.

If the proposal proceeds, I Squared Capital plans to execute the deal through its portfolio company, HGC Global Communications.

Shares of HKBN jumped 6% in Tuesday's late morning trade.

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