Hong Kong Broadband Network Receives New Acquisition Proposal, Surpassing China Mobile's Offer

Hong Kong Broadband Network (HKBN), a network service provider, previously received an acquisition offer from China Mobile, which proposed a purchase price of HK$5 per share. However, an unexpected competitor has also shown interest in acquiring HKBN.

The new acquisition interest comes from I Squared Asia Advisors Pte. Ltd., the owner of Hong Kong Global Communications (HGC). This raises the question: is there a plan to merge HKBN with HGC after the acquisition?

I Squared Asia Advisors Pte. Ltd. has issued a non-binding preliminary expression of interest to acquire 100% of HKBN's shares, indicating that if the transaction goes through, it would be executed via HGC.

This means HKBN now has two acquisition offers on the table: the one from China Mobile at HK$5$ to HK$6 per share, potentially exceeding China Mobile's offer.

With HKBN's current share price below HK$5, these offers do not seem particularly high. It remains to be seen whether HKBN's shareholders will agree to either proposal, but an acquisition could help strengthen the company's position.

Currently, HKBN holds a 36.6% share of the broadband network market in Hong Kong, with its biggest competitor being HKT, which commands a 45% market share. Both HGC and China Mobile are likely seeking to increase their market share in Hong Kong's broadband network market through the acquisition of HKBN.

However, there has been no indication yet of which offer HKBN favors. While the selling price is a primary consideration, other terms are also important factors for shareholders.