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

• 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.