China Mobile explores acquiring Hong Kong telecom firm HKBN

State-owned China Mobile Ltd is exploring a potential buyout of Hong Kong's leading telecoms company HKBN Ltd, which is currently valued at US$1 billion, four people with knowledge of the matter said. 

China Mobile in recent weeks sent a request for proposal (RFP) to a small group of banks to advise on acquiring and taking-private the Hong Kong telecom provider, which offers services including broadband and Wi-Fi management, said the people. 

The Beijing-based company is still receiving pitches from investment banks and has yet to decide on making a formal offer, said the people, declining to be identified as the information is confidential. 

HKBN had a market value of HK$7.94 billion (US$1.01 billion) as of Tuesday morning's market close. 

Bidders are generally expected to offer a premium to the company’s current trading share price. 

China Mobile and HKBN did not immediately respond to a request for comment. 

(Reuters)