(Bloomberg) -- China Mobile, the world’s largest wireless carrier by subscribers, is exploring a potential deal for Hong Kong broadband provider HKBN Ltd. as it looks to expand its footprint in the city, people with knowledge of the matter said.

State-backed China Mobile has been holding discussions about a deal with HKBN’s major shareholders, buyout firms MBK Partners and TPG Inc., the people said. It has indicated it’s willing to pay at least HK$5 per share for their holdings, which would value the company at more than HK$6.5 billion ($835 million), according to the people. 

China Mobile has conducted due diligence on the potential acquisition and is currently negotiating with MBK and TPG over the price of a potential deal, the people said. They may hold out for a higher valuation and there’s no certainty the parties will reach an agreement, according to the people. HKBN shares have climbed 24% this year, giving the company a market value of about HK$5.7 billion.

Other suitors including private equity firms remain interested in HKBN, and another buyer could still emerge, the people said. Representatives for China Mobile and HKBN didn’t immediately respond to queries. Spokespeople for MBK and TPG declined to comment. 

HKBN, one of a handful of broadband service providers in Hong Kong, drew preliminary takeover interest from investment firm IDG Capital earlier this year, Bloomberg News has reported. It has also attracted private equity firms including I Squared Capital, but disagreements over factors such as valuation meant a deal was never reached.

HKBN offers internet, as well as other telecom, data center and Wi-Fi services. Its major shareholders also include Canada Pension Plan Investment Board and Singapore’s GIC Pte.

An acquisition would extend China Mobile’s reach in Hong Kong, where it is also in talks to buy commercial property from tycoon Chen Hongtian, Bloomberg reported last week.

--With assistance from Edwin Chan and Shirley Zhao.

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