AsiaInfo announced that it planned to issue 182 million new shares to China Mobile International, a wholly-owned subsidiary of China Mobile , which accounts for about 20.0% of the company’s shares after expansion.
After becoming a shareholder, China Mobile will be second largest shareholder of AsiaInfo.
According to the announcement, the subscription will promote a long-term cooperation between AsiaInfo and China Mobile Group at the strategic level, give full play to the company’s flexible advantages in the operation of the market-oriented mechanism, and jointly explore development opportunities for new strategic fields. With the deep cooperation in 5G network intelligence, digital operations, vertical industries and enterprise cloud, richer and multi-layered communications, information infrastructure and digital services will be provided to customers in various industries, in order promote the integration and innovation of the national information and communication industry, accelerate development, create a new pattern of industrial development and add new momentum to the innovative development of social transformation.
After this capital cooperation is completed, the net proceeds will be approximately HK $1.384 billion, about 40% of which will be used 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% of which will be used for investment or acquisition of assets and businesses that complement the company's business to meet the development strategy of the company; 25% of which will be used as general operating capital.
