At least seven companies, including HKBN and SmarTone, have submitted bids for Wharf Holdings' Hong Kong telecoms division Wharf T&T, according to reports.
Reuterscites unnamed sources as stating that private equity companies including KKR, MBK Partners and TPG Capital Management have also submitted bids for the company.
The sale is looking likely to reach a price of $1 billion to $1.2 billion, according to the report. HKBN is currently the front-runner in the auction, but may face antitrust scrutiny and will require shareholder approval for the purchase, so its bid is less certain than others'.
Wharf T&T is Hong Kong's second largest enterprise fixed line telecoms operator in Hong Kong, and also has subsidiaries providing residential broadband, eBusiness and IT services.
Parent company Wharf Holdings put its telecoms business up for sale in June following a strategic review of its communications, media and entertainment division.
Last year Wharf T&T generated an ebitda of around $100 million, the sources said.