Hong Kong broadband company HKBN (HKG:1310) is close to getting a buyout offer from private equity firm I Squared Capital, Bloomberg News reported Tuesday, citing people familiar with the situation.

The private equity firm started due diligence on HKBN in December 2024, the report said.

I Squared Capital is already evaluating potential cooperations to decide on a new offer, the report said, citing the sources.

I Squared could offer about HK$5 to HK$6 per share, the report said.

Should it proceed, I Squared could put itself in a bidding war with China Mobile (HKG:0941, SHA:600941), which was reported to be willing to pay HK$5.23 per share for HKBN, Bloomberg said.

China Mobile is said to have held talks with BK Partners and TPG for the acquisition, which is seen to expand the telco's reach in the city, according to a previous report by Bloomberg.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)