Broadband operator HKBN (HKG:1310) said its controlling shareholder China Mobile Hong Kong agreed to sell a portion of its holdings to meet a Hong Kong public float requirement, according to a bourse filing Sunday.
Shares of the company fell 7% in morning trade Monday.
China Mobile Hong Kong, a unit of China Mobile (HKG:0941, SHA:600941), agreed to sell 47,925,000 HKBN shares representing 3.24% of the business. The placing is expected to close Wednesday.
The sale would reduce China Mobile's current holdings from 78.08% to 74.84%, meeting a Hong Kong listing requirement that at least 25% of a company's shares be in the hands of the public.