Chinese smartphone vendor Xiaomi (HKG: 1810) has agreed to buy a 27.44% stake of Zimi International for USD 102.84 million, a firm that produces power banks, chargers, wireless chargers, data cables, and smart home appliances in China, according to a filing on Thursday.
Xiaomi will pay USD 25.78 million in cash and USD 77.06 million by issuing 54.4 million shares to Zimi’s selling shareholders, including Zifone, which is principally engaged in investment activities, and three senior management personnel.
This new stake, combined with a 22.47% previously held by Red Better, a wholly-owned subsidiary of Xiaomi, will allow Xiaomi to hold a 49.91% stake of Zimi when all transactions are closed. Zifone’s stake will be lowered from 29.97% to 6.96%.
Zimi’s technological and research and development capabilities in electrical power supply, camera, speakers and other Internet of Things (IoT) products can enhance the technological competitiveness of Xiaomi in 5G, artificial intelligence, and IoT sectors, said the phone maker in the filing.
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.