(Bloomberg) -- China Mobile, the world’s largest wireless carrier by subscribers, is in talks on a potential acquisition of Hong Kong broadband provider HKBN Ltd. as it looks to expand its footprint in the city. 

HKBN’s board has received a non-binding proposal from China Mobile Hong Kong Co., a unit of the state-backed carrier, about a potential cash takeover bid, it said in an exchange filing Wednesday. China Mobile and HKBN are still in discussions on terms of the potential offer including the price, according to the filing, which confirmed an earlier Bloomberg News report. 

China Mobile has conducted due diligence on the potential acquisition and has been negotiating with HKBN’s major shareholders, buyout firms MBK Partners and TPG Inc., people with knowledge of the matter said earlier. It 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. 

MBK and TPG may hold out for a higher valuation and there’s no certainty the parties will reach an agreement, the people said. Other suitors including private equity firms remain interested in HKBN, and another buyer could still emerge, the people said. 

Shares of HKBN, which were halted on Nov. 19, will resume trading Wednesday at 9 a.m. local time. The stock has gained 24% this year, giving the company a market value of about HK$5.7 billion.

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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