Telecom

China Mobile Is Said to Mull Deal for Internet Provider HKBN

  • State-owned firm eyes acquisition to boost Hong Kong footprint
  • HKBN’s private equity owners have been exploring exit options

A China Mobile Ltd. store in Shanghai.

Photographer: Raul Ariano/Bloomberg
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China Mobile, the world’s largest wireless carrier by subscribers, is exploring a potential deal for Hong Kong broadband provider HKBN Ltd. as it looks to expand its footprint in the city, people with knowledge of the matter said.

State-backed China Mobile has been holding discussions about a deal with HKBN’s major shareholders, buyout firms MBK Partners and TPG Inc., the people said. It has indicated it’s willing to pay at least HK$5 per share for their holdings, which would value the company at more than HK$6.5 billion ($835 million), according to the people.