china-mobile-to-buy-12-of-far-eastone

China Mobile to buy 12% of Far EasTone

As cross-strait relations warm up, China Mobile agrees to pay $528 million for a strategic stake in the Taiwanese mobile operator.

China Mobile yesterday announced that it has entered into an agreement to buy a 12% stake in Taiwanese mobile phone operator Far EasTone Telecommunications, worth NT$17.7 billion $528 million. This is the first major deal between China and Taiwan since cross-strait relations started to thaw last year.

China Mobile will subscribe to 444 million shares at a price of NT$40 per share, a 15.3% premium to Tuesday's closing price of NT$34.70.

Underlying the transaction is a strategic agreement to cooperate in the development of both company's businesses, said China Mobile in a stock exchange filing. The areas of cooperation will include joint purchases, roaming, data and value-added businesses and network...

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