China Mobile will pay Rmb39.8 billion $5.8 billion for a 20% stake in Shanghai Pudong Development Bank SPDB as the two firms aim to tap into the market for mobile payments.
The deal is intended to enable the two parties to build mobile finance and mobile e-commerce businesses encompassing mobile phone payments, mobile bank cards and mobile funds transfers.
Hong Kong-listed China Mobile is buying 2.21 billion new shares in SPDB at Rmb18.03 per share. The price represents a discount of 13.1% to SPDB's closing price on the Shanghai Stock Exchange on February 25, the last trading day before the parties entered a share subscription agreement, and a discount of 10% to...
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