According to four persons with knowledge of the situation, state-owned China Mobile Ltd (0941.HK) is considering a takeover of Hong Kong’s top telecom business HKBN Ltd (1310.HK). This might lead to a bidding war for the company, which is presently valued at $1 billion.
According to the persons, China Mobile recently filed an RFP to a select number of banks seeking their opinions on buying and taking private the Hong Kong telecom operator, which provides services like internet and Wi-Fi management.
The Beijing-based company is still taking investment bank presentations and hasn’t decided whether to make a formal offer, according to the people, who declined to be named because the material is private.
Following the Reuters article, HKBN shares increased by more than 17%, valuing the business at HK$9 billion ($1.15 billion).
A request for comment was not immediately answered by China Mobile or HKBN.
Following infrastructure investor I Squared Asia Advisors’ non-binding letter of interest for the Hong Kong telecoms services provider in March, China Mobile has reportedly expressed interest in acquiring HKBN.