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HKBN's William Yeung Doesn't Accept CMHK's Offer Price as Fair & Reasonable
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China Mobile Hong Kong (CMHK) has finalized the acquisition of nearly 214 million shares of HKBN (01310.HK) from Twin Holding Ltd at HKD5.075 per share. As of August 8, the purchase agreement has been completed, raising CMHK and its concert parties' stake to around 29.9%. HKBN Executive Vice-chairman and Group CEO William Yeung said in a circular to shareholders that CMHK's offer price didn't include a premium for HKBN's value, compared to CMHK's attempts to build its own network, and it didn't reflect the tremendous upside from synergies from an integration with CMHK, either. Yeung expected that the integration would leave mobile-only players and fixed-only players in a non-competitive position. HKBN has invested substantial capital and time in the past to create a competitive advantage at scale, and the offer price didn't reflect the current market conditions, including the positive impact of the decline in HIBOR on cash flow and dividends. Consequently, Yeung didn't accept the claim that CMHK's offer price was "fair and reasonable". AAStocks Financial News |
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