China Mobile Said to Buy into USTC Iflytek
HONG KONG, Aug 16, 2012 (SinoCast Daily Business Beat via COMTEX) --
China Mobile Ltd. (SEHK: 0941 and NYSE: CHL), the nation's biggest mobile phone operator, is said to buy into Shenzhen-listed Anhui USTC Iflytek Co., Ltd. (SZSE: 002230).
People in the know disclosed recently that in order to strengthen ability in the Internet, China Mobile planned to launch external investments, apart from establishing an Internet firm on the base of an Internet base in Guangdong Province. It had almost completed auditing USTC Iflytek and according to a contract inked by both sides, it will buy into the latter as a strategic investor.
USTC Iflytek said on August 12 that it was busy making preparation for introducing a strategic investor via issuing shares in a private placement and would suspended trading on the Shenzhen Stock Exchange from today. It forecasted that related information would be unveiled on August 17 and on the day, it would resume trading on the bourse. China Mobile is scheduled to release financial results for the first half of this year on August 17, thus industry observers believe that details related to the buy-into will be unveiled after release of the half-year financial results.
China Mobile has not made a response to the report. Xu Jingming, board secretary of USTC Iflytek, said in an interview that it had no information to unveil currently. Vice president of it declined to make a comment on the report on the grounds of having a meeting. So far, it has been unknown how much China Mobile will inject into USTC Iflytek and how much stake it will take in the latter in turn.
Established in 1999, USTC Iflytek is mainly engaged in the research of voice technology and artificial intelligence and development of software and chip products. It debuted on the Shenzhen stock market on 2008, with major shareholders including USTC Holdings Co., Ltd. and Legend Capital. It grew fast in the past few years and has had a sharp edge in the domestic voice software sector. In line with itself, share it seized in the Chinese-language voice industry has reached over 70 percent. And in line with financial results it released for the fiscal year 2011, the operating revenue hit CNY 557 million, up 27.74 percent from a year ago, with profit surging up by 31.13 percent to CNY 144 million.
Essence Securities Co., Ltd. said that China Mobile had cooperated with USTC Iflytek on intelligent voice prior to this and after the former became a strategic investor of the latter, more in-depth cooperation covering call center, color ring and mobile Internet would be launched undoubtedly.
(USD 1 = CNY 6.37)
Source: www.yicai.com (August 16, 2012)
[ Back To TMCnet.com's Homepage ]