China Mobile takeover offer not good enough, says HKBN CEO

The company said it still welcomes other bidders.

Broadband operator HKBN said China Mobile’s $7.8b (US$996m) takeover offer is not good enough, CEO William Yeung said via Reuters report.

The chief executive said the company is willing to engage with other bidders to get better value for shareholders.

HKBN reported a 5% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the six months ending May—outpacing the 3% growth achieved by major competitor Hong Kong Telecom, Yeung said.

He further criticised the offer for overlooking HKBN’s capital expenditure, which has reached about $11b, and the company’s future growth potential.

China Mobile’s offer of US$5.23 per share effectively translates to about $4.91 per share after excluding dividends, according to Yeung.

He also denied reports that China Investment Corp blocked rival bidder I Squared Capital from making a formal offer.

Yeung said talks with both China Mobile and I Squared are ongoing, and HKBN remains open to other potential bidders.

In a January Reuters report, I Squared was preparing a competing bid that could exceed China Mobile’s offer but would not go beyond $6 per share.

Yeung added that board members have differing views on the takeover but emphasized the company’s focus on maximizing shareholder value.