China Mobile submitted a bid to acquire HKBN for about HKD7.8 billion ($1 billion), following an undisclosed offer made by US-based private equity company I Squared Capital, South China Morning Post reported.

The newspaper wrote China Mobile received irrevocable undertakings from HKBN shareholders Canada Pension Plan Investment Board and private equity company TPG, which hold respective stakes of 13.9 per cent and 11.3 per cent, to accept the bid.

Trading in HKBN shares was halted on 2 December under Hong Kong’s takeover regulations.

China Mobile is the world’s largest mobile operator by subscribers and moved to buy the Hong Kong-based broadband company in November.

In its fiscal 2024 (ending 31 October), HKBN booked a net profit of HKD10 million, compared with a loss of nearly HKD1.3 billion in fiscal 2023 attributed to an HKD1.2 billion impairment charge on goodwill. Revenue declined 3 per cent to HKD10.7 billion.

It closed its fiscal year with 907,000 residential broadband customers and 98,000 enterprises clients.

HKBN rival HGC Global Communications was acquired in 2017 by I Squared Capital, which is looking to gain scale in Hong Kong’s broadband market.