Hong Kong telecommunications company HKBN said on Wednesday it has received a non-binding proposal from state-owned China Mobile for a possible takeover of the broadband firm as China Mobile aims to bolster its foothold in Hong Kong.
Shares of HKBN were halted from trading on Tuesday morning in Hong Kong, awaiting an announcement under the city’s takeover regulations.
HKBN, however, did not disclose any financial details related to the possible proposal, including the cash offer.
The Hong Kong telecoms firm further said it was still in discussions with China Mobile on the terms of these proposals, including the price.
Hong-Kong listed HKBN currently boasts a market cap of HK$5.65 billion ($725.91 million), as per data compiled by LSEG.
China Mobile, the world’s largest wireless carrier by subscribers, seeks to increase its presence in Hong Kong by acquiring the 1999-founded telecoms firm that provides internet, data centre and Wi-Fi services, among others.
Although it provides telecom services in the world’s second-largest economy, China Mobile has a limited footprint outside its home country.
Reuters reported last year that China Mobile had been mulling a buyout of HKBN.
HKBN has applied to the Hong Kong Stock Exchange for the resumption of trading in its shares from 9 a.m. local time on Nov. 20.
Reuters
