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Investing.com-- China Mobile (HK:0941) said on Monday that it has acquired a 14.4% stake in one of Hong Kong’s largest telecom operators, Hong Kong Broadband Network (HKBN) (HK:1310) for HK$1.08 billion ($137.6 million).
China Mobile’s Hong Kong arm purchased 213.6 million shares at HK$5.075 apiece from investment firm Twin Holding. The purchase brings China Mobile’s total stake in HKBN close to 30%.
The deal follows China Mobile’s earlier move in April when it acquired a 15.5% holding in HKBN from TPG for approximately HK$1.20 billion. At the time, the transaction sparked speculation about a broader takeover plan.
HKBN provides residential and enterprise fiber broadband and data center services. The investment allows China Mobile to strengthen its position in Hong Kong’s broadband market, tapping into HKBN’s subscriber base and infrastructure network.
Hong Kong-listed HKBN shares traded 1% higher, while China Mobile shares fell 0.6% on Monday.