China Mobile (CHL) has agreed to purchase Hong Kong's China Resources Peoples Telephone (CR Peoples).

China Mobile will pay HK$3.38 billion to buy 744 million CR Peoples shares at HK$4.55 each.

The shares are offered by CR Peoples' major shareholder Michael Leung, who holds an 18% stake, and the company's parent China Resources, which holds a 48% stake.

CR Peoples is one of the six primary providers of the voice and data communications services in Hong Kong, with approximately 1.21 million subscribers. It is the fourth largest telecom company in the city.

In 2004, CR Peoples reported HK$1.68 billion in revenues.