China Mobile Hong Kong now holds a 70.7 percent stake in HKBN (1310) but reportedly has no intention to privatize the company.
Last December, CMHK made a conditional voluntary general cash offer to acquire all issued shares of HKBN at HK$5.23 per share.
The Hong Kong unit of China Mobile (0941) announced on Wednesday that by the first closing deadline at 4 p.m., valid acceptances for approximately 603 million shares, representing about 40.8 percent of all issued shares, had been received.
Combined with the 442 million shares already held by CMHK, the offeror and its parties acting in concert now hold a total of more than 1 billion shares, constituting about 70.7 percent of all issued shares.
Consequently, all conditions of the offer, including the acceptance condition, have been fulfilled, and the share offer has become unconditional in all respects.
According to the Takeovers Code, the offer must remain open for acceptance for at least 14 days after it has become or been declared unconditional. Therefore, the share offer will remain open until 4 p.m. on September 17.
Despite securing a controlling stake, CMHK still does not intend to privatize HKBN, local media reported.
China Mobile plans to maintain HKBN's listing status and support its efforts to improve its financial health and the merger is expected to help HKBN secure more favorable financing terms and repay debts, potentially reducing annual interest expenses by up to HK$600-700 million, which would benefit its long-term development, according to the report.
Furthermore, China Mobile aims to leverage its industry-leading expertise and advantages to enhance HKBN's competitive position, expand its market share, and maximize synergies. This strategy is intended to deliver medium- to long-term value for shareholders who have consistently supported HKBN.
