China Mobile is reportedly considering a buyout of Hong Kong’s leading telecoms provider, HKBN, which could trigger a bidding war for the company that is currently valued at $1bn.
The state-owned firm has sent a request for proposal to a small group of banks to advise on acquiring and taking private the Hong Kong-based firm that provides services including broadband and Wi-Fi management.
Investment banks are pitching proposals, and China Mobile is yet to make a formal offer. Other potential suitors include Hong Kong-based private equity firm PAG. If China Mobile proceeds with the acquisition, it would mark a significant entry by a Chinese telecoms operator into the Asian financial hub and regional home to many global financial institutions.
