China Mobile acquires 20% stake in AsiaInfo

China Mobile acquires 20% stake in AsiaInfo

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China Mobile has acquired 182 million shares of BSS and OSS provider AsiaInfo Technologies equal to 20% of the business

The deal will make China Mobile International a subsidiary of China Mobile the second largest shareholder of AsiaInfo.

Under the terms of the deal, the two will enter into a long-term strategic partnership particularly in the development of 5G network intelligence, digital operations, vertical industries and enterprise cloud, richer and multi-layered communications, digital infrastructure and services all to promote greater innovation and digital transformation.

The transaction has been valued at approximately HKD1.4 billion ($180.6 million). These funds will be allocated as such: 40% for R&D investment in new products and technologies, as well as the business development of OSS, digital operations, vertical industry and enterprise cloud.

35% will be used for investment or acquisition of assets and businesses that complement the business. And 25% of which will be used as general operating capital.

The agreement is also set to deepen expand the relationship between AsiaInfo and other regional operators such as China Telecom, China Mobile and China Unicom with expanded portfolio offerings.

Prior to this the company revealed its 2019 full year results. For the period operating revenue was up 1.2% while EBITDA was up 7.4%.

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