China Mobile (HKG: 941), the country’s largest telecom carrier, will invest HKD 1.4 billion (USD 129 million) into AsiaInfo Technologies (HKG: 1675), a Beijing-based software provider, according to AsiaInfo’s filing with the Stock Exchange of Hong Kong late Tuesday.
A wholly-owned subsidiary of China Mobile has agreed to buy 182.3 million new shares to be issued by AsiaInfo at HKD 7.6 per share, which represents a discount of 21.5% to the average closing price for the last thirty trading days. After completing the deal, China Mobile will take a 20% stake in AsiaInfo, becoming its second largest shareholder.
The two companies will further cooperate in 5G network operations to offer “richer and multi-dimensional communication, information infrastructures, and digital services”, said AsiaInfo, without offering additional details.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.