Hong Kong's HKBN receives potential buyout proposal from China Mobile
Adds background in paragraphs 2-7
Nov 20 (Reuters) -Hong Kong telecommunications company HKBN Ltd 1310.HK said on Wednesday it has received a non-binding proposal from state-owned China Mobile 600941.SS for a possible takeover of the broadband firm.
Shares of HKBN were halted from trading on Tuesday morning in Hong Kong, awaiting an announcement under the city's takeover regulations.
HKBN, however, did not disclose any financial details related to the possible proposal, including the cash offer.
Hong-Kong listed HKBN currently boasts a market cap of HK$5.65 billion ($725.91 million), as per data compiled by LSEG.
China Mobile, the world's largest wireless carrier by subscribers, seeks to increase its presence in Hong Kong by acquiring the 1999-founded telecoms firm that provides internet, data center and Wi-Fi services, among others.
Although it provides telecoms services in the world's second-largest economy, China Mobile has a limited footprint outside its home country.
Reuters reported last year that China Mobile had been mulling a buyout of HKBN.
($1 = 7.7833 Hong Kong dollars)
Reporting by Rajasik Mukherjee and Roshan Thomas in Bengaluru; editing by Alan Barona
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