China Mobile said on Monday it had offered to acquire HKBN in a deal valuing the Hong Kong-based broadband company at HK$6.86 billion ($882 million), as it looks to counter a move from a private equity firm.
Earlier, U.S.-based I Squared Capital offered to buy HKBN for an undisclosed amount. China Mobile had also proposed to acquire the company in November, without giving financial details.
China Mobile, the world’s largest wireless carrier by subscribers, is offering to acquire HKBN for HK$5.23 per share, a 7.6% premium to the company’s last close.
Shares of HKBN have jumped about 13% since China Mobile first expressed interest in the company last month. They are also up about 39% for the year.
HKBN’s acquisition will help China Mobile expand its limited footprint outside its domestic market.
Trading in HKBN’s shares were halted under the city’s takeover regulations on Monday morning in Hong Kong.
Source: Reuters.com