October 21, 2005, 8:46 AM — Looking to get a foothold in China's mobile telephony market, China Mobile (Hong Kong) Ltd., the listed arm of China's largest mobile phone operator, has tendered a cash offer to purchase Hong Kong mobile operator China Resources Peoples Telephone Co. Ltd., according to a company statement.
Peoples, which is one of six mobile operators in Hong Kong, had more than 1.2 million subscribers as of June 30, according to China Mobile Hong Kong.
Under terms of the offer, China Mobile Hong Kong will purchase all issued shares in Peoples for HK$4.55 (US$0.59), valuing the operator at around HK$3.4 billion, China Mobile Hong Kong said in a statement. The offered price represents a premium of around 27 percent over Peoples average closing stock price of HK$3.12 over the last 30 trading days, it said.
The offer expands on a deal between China Mobile Hong Kong, China Resources (Holdings) Co. Ltd., and Michael Leung, an executive director of China Resources, for China Mobile Hong Kong to purchase 66.24 percent of Peoples' outstanding shares for HK$4.55 per share in cash.
If Peoples' shareholders and Hong Kong regulators approve the deal, China Mobile Hong Kong plans to take Peoples private, it said.