The mainland parent company of China Mobile (Hong Kong) has succeeded this month in acquiring Luxembourg-based Millicom International Cellular, a Nasdaq- listed mobile operator serving Latin America, Africa and Asia, a source close to the deal said Tuesday.

The acquisition marked China Mobile Communications' first investment outside Asia.

No purchase price was disclosed, although the UK-based Financial Times reported in April that China Mobile Communications had offered US$4 billion (HK$31.2 billion), less than Millicom's US$4.9 billion market value at the time.

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According to the source, China Mobile made only the second- highest offer, but won out after the top bidder, Beirut-based Investcom, dropped out of the process and agreed instead to be taken over by MTN Group of South Africa.

Millicom's Luxembourg office could not be reached Tuesday due to a public holiday, while its London investor relations office did not return a telephone call from The Standard seeking comment.

Rainie Lei, a Hong Kong-based spokeswoman for China Mobile (Hong Kong), could not be reached on her mobile.

Millicom, which operates in 16 countries, listed on Nasdaq, the largest US electronic stock market based in New York, in 1993. According to the Luxembourg company's annual report, it has a total number of 8.9 million mobile users, with 2005 revenues totaling US$1 billion. Latin America accounts for 60 percent of its revenues, with Africa providing another 20 percent. It reported gross earnings of US$489 million last year, up 8 percent over 2004.

Meanwhile, China Mobile Communications, through its 75 percent-owned Hong Kong subsidiary, has a total of 265 million mainland subscribers - covering more than two-thirds of China's mobile market - including 4.3 million new customers added in April.

The source said the acquisition of Millicom shows China Mobile's ambition to expand globally and spend money to generate more revenue. The acquisition requires regulatory approval from Beijing.

In March, China Mobile (Hong Kong), which had more than 64 billion yuan (HK$61.8 million) cash or equivalent on hand as at the end of 2005, spent HK$3.4 billion buying some 60 percent interest in China Resources Peoples Telephone, a Hong Kong-based wireless operator. Last year, China Mobile lost out in a bid to purchase a stake in Pakistan Telecommunications.

Shares of China Mobile (Hong Kong) rose 1.8 percent Tuesday to HK$41. The stock price has risen 11 percent in the past 12 months.