News
US investment firm I Squared Capital has also filed a non-binding offer for the company, opening the door to a potential bidding war
China Mobile, the world’s largest mobile operator, has launched a HK$6.86 billion (US$881 million) bid to acquire Hong Kong Broadband Network (HKBN), one of Hong Kong’s top internet service providers. According to stock market filing, this offer could increase to HK$7.8 billion (US$1 billion) when factoring in unvested share units and vendor loan notes.
HKBN currently serves roughly 932,000 broadband customers, with its full fibre network spanning 2.6 million homes across the city-state.
The offer, priced at HK$5.23 per share, is already backed by key HKBN shareholders, including the Canada Pension Plan Investment Board and TPG, who together hold 25% of the company’s shares. However, other shareholders, such as South Korea’s MBK Partners, are reportedly holding out for a higher valuation, making negotiations complex.
In fact, the situation could easily become a bidding war, with US private equity firm I Squared Capital having also expressed interest in acquiring the company. While specific details of I Squared’s bid have not been disclosed, sources speaking to Bloomberg suggested it would value the business at $5–6 per share – potentially slightly higher than the bid from China Mobile.
This would be the second time I Squared Capital has attempted to purchase the company, having had a offer rebuffed last year, according to reports.
For China Mobile move would mark a significant step beyond its core mobile operations in Hong Kong, tapping into the steadily growing fixed broadband market.
The move is broadly in line with the company’s wider strategy to diversify and increase growth opportunities outside mainland China.
Analysts suggest that a successful acquisition would not only boost China Mobile’s competitive edge in Hong Kong but could also act as a springboard for further expansion into other high-value markets.
The deal is not yet finalised and negotiations are ongoing.
Also in the news:
Deutsche Telekom replaces Huawei kit in new Nokia deal
BT secures £1.29bn contract for UK emergency services network
UK govt looks to satellite to solve rural connectivity woes
© Copyright 2024 CNB Tel. All rights reserved