China Mobile this week announced that it will buy a 15.46 percent stake in local broadband provider Hong Kong Broadband Network (HKBN).
In a filing, China Mobile noted that it will acquire the stake through its Hong Kong subsidiary for HK$1.20 billion (US$154.64 million).
The company is acquiring the stake from Cayman Islands-registered TPG Wireman. The deal will make China Mobile HK (CMHK) the equal largest shareholder. Investment holding company Twin Holding also owns 15.46 percent.
Founded in 1999, HKBN is one of the biggest Internet and telecommunications service providers in Hong Kong.
China Mobile's stake acquisition will be carried out in two parts. CMHK will initially acquire approximately 145 million shares from TPG Wireman for around HK$758.2 million ($97.7m).
The second part will see CMHK snap up TPG Wireman's vendor loan conversion shares for HK$437.5 million (US$56.4m). Following this, TPG Wireman will no longer hold any shares.
China Mobile has been interested in acquiring a stake in HKBN for the past couple of years.
It emerged last year that the carrier, the largest in the world for subscribers, was in a bidding war with I Squared Capital for HKBN.
It was reported back in 2023 that Hong Kong-based fixed-line telecom operator HGC Global Communications, owned by I Squared Capital, was also keen on a deal to buy HKBN for $1 billion.
I Squared Capital acquired HGC for HK$14.5 billion ($1.86bn) back in 2017. HGC is a competitor to HKBN, offering similar services to customers across the territory.
