China Mobile Entered into Share Subscription Agreement and Established Strategic Cooperation with SPD Bank
HONG KONG, March 10 /PRNewswire-Asia/ -- China Mobile Limited (HKEx: 941; the "Company") announced today that its wholly-owned subsidiary, China Mobile Group Guangdong Company Limited ("Guangdong Mobile"), entered into a share subscription agreement with Shanghai Pudong Development Bank Co., Ltd. ("SPD Bank"). Pursuant to the share subscription agreement, Guangdong Mobile will subscribe for 2,207,511,410 A shares to be issued by SPD Bank by way of private placement, representing 20% of the issued shares of SPD Bank as enlarged by the subscription. The subscription price for each share is RMB18.03 (equivalent to approximately HK$20.50) and the total consideration for the subscription is approximately RMB39.8 billion (equivalent to approximately HK$45.3 billion). The Company and Guangdong Mobile also entered into a strategic cooperation memorandum of understanding with SPD Bank and the parties will use their best endeavours to enter into a strategic cooperation agreement within three months following completion of the subscription, to agree the details of and give effect to the strategic cooperation as set out in the strategic cooperation memorandum of understanding. Upon completion of the subscription, the Company and SPD Bank will closely cooperate in the joint development of mobile e-Commerce businesses, among others.
Telecommunications technology has been rapidly evolving and customer demand for the mobility and portability of products is increasing. Mobile telecommunications terminals become more and more multi-functional. Mobile handsets have transformed from a simple tool for communications to a valuable device for communications, entertainment and shopping. Along with the rapid development of China's macro-economy, the increasing penetration of mobile Internet and the popularisation of Internet of Things in China, mobile phone payments and mobile e-Commerce will become one of the major means that people make their spending in the future, which will present unprecedented development opportunities to mobile telecommunications operators in China. Through the in-depth cooperation between the parties, China Mobile will make great efforts in developing mobile phone payments and mobile e-Commerce businesses and promote B2C and C2C e-Commerce services using mobile handsets as the terminal.
"As mobile handset becomes more multi-functional, it serves an increasingly important role in peoples' daily living. Following the rapid development of China's economy, a growing wide application of mobile e- Commerce is expected. The cooperation between China Mobile and SPD Bank signifies the exploration of a closer integration between mobile communications and e-Commerce applications. Our aim is to provide safer, faster and more convenient services to our customers and improve peoples' quality of life. I believe this cooperation will open up a "blue ocean" for both parties and result in a win-win situation," said Mr. WANG Jianzhou, Chairman and Chief Executive Officer of the Company.
Mr. JI Xiaohui, Chairman of SPD Bank said, "We are very pleased to become a strategic partner of China Mobile, the world's largest mobile communications operator. Along with the continuously growing per capita consumption in China and the increasing popularization of electronic payments, mobile finance and mobile e-Commerce will rapidly grow and become sizeable operations. It will become an important strategic market for mobile communications operators and commercial banks. As one of the nationwide commercial banks, the cooperation between SPD Bank and China Mobile will benefit both parties as we jointly seize and develop this emerging business opportunity. This will also enhance the market competitiveness of SPD Bank."
China International Capital Corporation Hong Kong Securities Limited acted as the financial advisor to China Mobile Limited.
General Information of China Mobile
China Mobile is the leading mobile telecommunications operator in Mainland China, providing mobile voice services, mobile data services and other related services in all thirty-one provinces, autonomous regions and directly- administered municipalities in China. China Mobile is also one of the major mobile telecommunications operators in Hong Kong. As at 31 January 2010, China Mobile had the largest subscriber base worldwide of approximately 527 million.
General Information of SPD Bank
SPD Bank is a joint-stock commercial bank with its headquarters located in Shanghai, PRC. The shares of SPD Bank are listed on the Shanghai Stock Exchange. As at 31 December 2009, SPD Bank had 33 branches directly controlled by its head office and 565 outlets in the PRC. Through this network, SPD Bank provides a broad range of financial products and services to its corporate and retail customers.
Press inquires please contact:
China Mobile Limited
Ms. Rainie Lei
Tel: +852-3121-8888
Fax: +852-3121 8809
SOURCE China Mobile Limited
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