Exclusive-China Mobile explores acquiring Hong Kong telecom firm HKBN -sources

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HONG KONG (Reuters) – State-owned China Mobile (NYSE:CHL) Ltd is exploring a potential buyout of Hong Kong’s leading telecoms company HKBN Ltd, which is currently valued at $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 ($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.

($1 = 7.8498 Hong Kong dollars)