China’s largest wireless operator has partnered with state-owned investors SDIC to create a new company for investing in mobile internet-related businesses.
China Mobile’s wholly-owned unit CMC has committed Yn1.5bn (US$241.7m) through internal…
China’s largest wireless operator has partnered with state-owned investors SDIC to create a new company for investing in mobile internet-related businesses.
China Mobile’s wholly-owned unit CMC has committed Yn1.5bn (US$241.7m) through internal resources for a 58.8% stake in the new group, called China Mobile Innovative Business Fund (Shenzhen) Partnership.
SDIC (State Development & Investment Corporation) has committed Yn1bn (US$161.1m) for a 39% chunk, while Fund Management Company, an equity investment enterprise partly owned by both companies, will pay RMB50m (US$8m) for the remaining 2%.
The commitments will initially give the 10-year partnership Yn2.55bn (US$410.9m) it total capital, although this could be boosted to Yn5bn (US$805.7m) during its first year by bringing in other investors.
If the total capital commitment has increased to Yn5bn after the one-year window has expired, other investors would have paid Yn2.45bn (US$394.8m) for a combined 49% stake. CMC would be left with 30%, SDIC 20% and Fund Management Company 1%, according to a stock exchange filing.
China Mobile said the partnership will “invest in shares, equity interests, businesses and assets of companies, enterprises or other economic organisations with growth potential which are engaged in the mobile internet and related upstream and downstream businesses”, with the main targets being enterprises at the growth and maturity stages.
