- China Mobile’s offer of HK$5 per share for HKBN is dismissed by CEO Ni Quiaque Lai as undervaluing the company.
- HKBN now seeks new investors to obtain a higher valuation, signalling renewed competition for one of Hong Kong’s top telecom firms.
What happened: HKBN turns down HK$7.6 billion offer from China Mobile
Hong Kong broadband operator HKBN has formally rejected a buyout proposal from China Mobile International Holdings, calling the offer too low. The HK$5 per share bid—valuing the company at HK$7.6 billion—was dismissed by CEO Ni Quiaque Lai, who said the deal did not reflect HKBN’s true worth. Lai has instead invited other potential investors to come forward with improved terms, stating his belief that better offers could be secured.
According to Economic Times Telecom, HKBN’s strategic move follows an earlier review of its options after receiving several expressions of interest. China Mobile had confirmed its non-binding proposal in April, but the terms fell short of what HKBN’s leadership deemed acceptable. HKBN, one of Hong Kong’s largest fixed-line telecom firms, serves residential and enterprise customers with broadband, data, and cloud solutions.
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Why this is important
HKBN’s rejection of the offer underscores broader shifts in the regional telecom market, where undervaluation concerns are growing as Chinese state-owned enterprises target private firms for acquisition. By seeking higher bids, HKBN is signalling confidence in its long-term value—especially in a post-COVID landscape where digital infrastructure demand is surging. The move also challenges China Mobile’s expansion ambitions outside mainland China, where it has increasingly sought international assets amid a slowing domestic market.
Lai’s firm stance may encourage other mid-sized operators to resist pressure from larger state players, reinforcing competition in the sector. It also sets a precedent for more assertive deal-making in Hong Kong’s maturing telecoms space. The decision comes as HKBN faces rising investment needs in cloud services and fibre upgrades—areas where new capital and partners could be more beneficial than a single buyer.
China Mobile, the world’s largest telecom operator by subscribers, may now need to reassess its international acquisition strategy or increase its offer if it wishes to stay in contention.
