China Mobile Ltd. has launched a HK$6.86 billion (approximately $882 million) bid to acquire HKBN Ltd., a leading broadband provider in Hong Kong. The proposed offer of HK$5.23 per share represents a 41% premium over HKBN’s recent share price, signaling strong confidence in the value of this acquisition. Major shareholders, including the Canada Pension Plan Investment Board and TPG Inc., which collectively own 25% of HKBN, have agreed to the deal.
This strategic acquisition aims to bolster China Mobile’s telecommunications offerings in Hong Kong by integrating HKBN’s broadband services with its existing wireless network. The merger is expected to create a more comprehensive service portfolio for customers, enhancing the company’s competitiveness in the region.
The deal is subject to regulatory approvals, including assessments by Hong Kong’s competition authorities and filings with Chinese regulators. Notably, China Mobile plans to keep HKBN as a publicly traded entity after the acquisition, signaling its intent to maintain operational transparency and shareholder engagement.
China Mobile’s offer positions it ahead of other potential buyers, such as I Squared Capital, which has also shown interest in acquiring HKBN. The company intends to improve HKBN’s financial health by reducing its interest expenses, thereby boosting operational efficiency and profitability.
This move aligns with China Mobile’s broader strategy to expand its footprint in Hong Kong’s telecommunications market. By acquiring HKBN, the company seeks to capitalize on synergies between broadband and wireless services while further solidifying mainland enterprises’ influence in the region. If completed, the acquisition will mark a significant milestone in China Mobile’s efforts to diversify and enhance its service offerings.
