Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Almost exactly eight months after <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a> announced a pre-conditional Offer, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> has now satisfied all pre-cons. </li>
<li>The Offer Doc will be dispatched on or around the 12th August, at which time the Offer will be open for acceptances.</li>
<li>This could turn unconditional early September. Trading tight at a gross spread of 1.5%. Keep in mind a basket of peers are up 23% since the Offer was announced.</li>
</ul>


Almost exactly eight months after HKBN Ltd (1310 HK) announced a pre-conditional Offer, China Mobile (941 HK) has now satisfied all pre-cons. 
The Offer Doc will be dispatched on or around the 12th August, at which time the Offer will be open for acceptances.
This could turn unconditional early September. Trading tight at a gross spread of 1.5%. Keep in mind a basket of peers are up 23% since the Offer was announced.


HKBN (1310 HK): Pre-Cons Satisfied. Offer To Open Shortly

<ul>
<li>Six months and counting; yet <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> continues to (slowly, but surely) chip away at various pre-conditions. </li>
<li>In its <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0609/2025060900588.pdf" target="_blank" rel="noopener">monthly update</a>, <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a> said Mobile has proposed commitments to Hong Kong's Communication Authority,  and that the commitments are sufficient to effectively address the CA's concerns. </li>
<li>The CA is seeking industry feedback by the 13th June, but a favourable conclusion appears a lock. Elsewhere, no update on I-Squared's proposal. </li>
</ul>


Six months and counting; yet China Mobile (941 HK) continues to (slowly, but surely) chip away at various pre-conditions. 
In its monthly update, HKBN Ltd (1310 HK) said Mobile has proposed commitments to Hong Kong's Communication Authority,  and that the commitments are sufficient to effectively address the CA's concerns. 
The CA is seeking industry feedback by the 13th June, but a favourable conclusion appears a lock. Elsewhere, no update on I-Squared's proposal. 


HKBN (1310 HK): CA Approval (All But) Done. NDRC & MoC Still Outstanding

<ul>
<li>Back in December, <a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> made a pre-conditional HK$5.23/share voluntary Offer for <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN  (1310 HK)</a>. The wild card is whether I Squared launches a counter-proposal.</li>
<li>This transaction has no shortage of intriguing developments. Last month, MBK mysteriously converted its VLNs. Now TPG has entered into an SPA with Mobile to sell its 15.46% stake.</li>
<li>
IF I Squared were to make a counter-proposal, I doubt it would secure the necessary regulatory approvals. Evidently TPG is not waiting around to find out.</li>
</ul>


Back in December, China Mobile (941 HK) made a pre-conditional HK$5.23/share voluntary Offer for HKBN  (1310 HK). The wild card is whether I Squared launches a counter-proposal.
This transaction has no shortage of intriguing developments. Last month, MBK mysteriously converted its VLNs. Now TPG has entered into an SPA with Mobile to sell its 15.46% stake.

IF I Squared were to make a counter-proposal, I doubt it would secure the necessary regulatory approvals. Evidently TPG is not waiting around to find out.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> has made a pre-conditional HK$5.23/share voluntary Offer for <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a>. However, a possible separate Offer from I Squared continues to make the news. </li>
<li>In an unusual move, MBK, via Twin Holding, has converted HK$970.5mn of VLNs, at a whopping HK$11.60/share conversion price, lifting MBK's stake to 16.39% on a fully diluted basis.</li>
<li>Speculation is rife that MBK provides an irrevocable to I Squared for its enlarged shareholding. Maybe. I still don't see China supporting a U.S.-based infrastructure firm over an SOE .</li>
</ul>



China Mobile (941 HK) has made a pre-conditional HK$5.23/share voluntary Offer for HKBN Ltd (1310 HK). However, a possible separate Offer from I Squared continues to make the news. 
In an unusual move, MBK, via Twin Holding, has converted HK$970.5mn of VLNs, at a whopping HK$11.60/share conversion price, lifting MBK's stake to 16.39% on a fully diluted basis.
Speculation is rife that MBK provides an irrevocable to I Squared for its enlarged shareholding. Maybe. I still don't see China supporting a U.S.-based infrastructure firm over an SOE .


HKBN (1310 HK): MBK Ups Stake Via VLN Conversion

<ul>
<li>Two hours before China Mobile's pre-conditional voluntary Offer announcement on the 2 December, <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a>  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1202/2024120202069.pdf" target="_blank" rel="noopener">flagged</a> a possible separate Offer from I Squared Asia-backed HGC Global Communication (HGC). </li>
<li>No price was mentioned, although HKBN and I Squared "are in discussions on the terms of the proposal (including the price)." The media is reporting a HK$5-HK$6/share price range.</li>
<li>Apart from anti-competition concerns via a HKBN/HGC tie-in; would HGC even get approval from the powers that be to proceed with a merger?</li>
</ul>


Two hours before China Mobile's pre-conditional voluntary Offer announcement on the 2 December, HKBN Ltd (1310 HK)  flagged a possible separate Offer from I Squared Asia-backed HGC Global Communication (HGC). 
No price was mentioned, although HKBN and I Squared "are in discussions on the terms of the proposal (including the price)." The media is reporting a HK$5-HK$6/share price range.
Apart from anti-competition concerns via a HKBN/HGC tie-in; would HGC even get approval from the powers that be to proceed with a merger?


HKBN (1310 HK): Just How Likely Is An I Squared Offer?

Hong Kong

Hong Kong Television Network Limited, through its subsidiaries, provides international telecommunications services and fixed telecommunication network services. The Company's services include broadband Internet access, local VoIP, IP-TV and corporate data services, direct dial, international calling cards, and mobile call forwarding services.

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Hong Kong Television Network (1137 HK)

HKBN (1310 HK): Pre-Cons Satisfied. Offer To Open Shortly

Trading at a gross/annualised spread of 1.5%/17.3% assuming early September payment. If in, stay in. Otherwise, this is an avoid.

David Blennerhassett

HKBN (1310 HK): CA Approval (All But) Done. NDRC & MoC Still Outstanding

You have Mobile's firm offer at a 2.1% gross spread. My bet is that the key PRC regulators are holding back until CA clears the transaction. Do not...

David Blennerhassett

HKBN (1310 HK): TPG Cashes In Early

This voluntary Offer has no shortage of intriguing developments. Last month, MBK mysteriously converted its VLNs. Now TPG has entered into an SPA...

David Blennerhassett

HKBN (1310 HK): MBK Ups Stake Via VLN Conversion

In its monthly update, HKBN mentions I Squared has finished DD and is finalising a possible pre-con offer. IF I Squared does make a higher firm...

David Blennerhassett

HKBN (1310 HK): Just How Likely Is An I Squared Offer?

According to Sing Tao Daily, PRC regulatory authorities have yet to respond to the transaction. Not quite sure what that means. It's been a little...

David Blennerhassett

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