Tuesday, April 28, 2009

China Mobile Takes Stake in Taiwan's Far EasTone

China Mobile will acquire a 12% equity stake in Taiwan-based Far EasTone Telecommunications Co.. Specifically, China Mobile will acquire 444,341,020 new shares of Far EasTone, representing 12% of its enlarged issued share capital, for approximately NT$17.77 bn (approximately HK$4.08 bn) in total or NT$40.00 (approximately HK$9.17) per share.

China Mobile and Far EasTone also agreed to cooperate closely in a number of areas, including procurement, roaming services, data and value-added services, and network and technology advancement.

China Mobile said the strategic alliance will facilitate its expansion especially amongst customers doing business on both sides of the Taiwan straights.

"This cooperation is not only a strategic milestone in ramping up our business initiatives, but also a big leap for the Taiwan telecommunications industry. Throughout our corporate history, Far EasTone has benefitted from technological and strategic partnerships with leading global operators. We launched with AT&T and subsequently entered into strategic cooperation with NTT DoCoMo, SingTel and now China Mobile. This new partnership will provide us with a very strong platform to grow," said Mr. Douglas Hsu, Chairman of Far EasTone.

Goldman Sachs (Asia) L.L.C. and China International Capital Corporation Limited act as the financial advisers to China Mobile in this transaction.