Datang may sell 20% stake to NSSF

Datang Telecom Technology & Industry Holdings Co, a major developer of the home-grown TD-SCDMA 3G standard, is in talks with the country's national pension fund to sell the latter a 20 percent stake through a private placement in a deal worth as much as 3 billion yuan ($439 million), company sources said.

Datang Telecom Holdings is a subsidiary of Datang Telecom Group, one of the country's leading telecom equipment makers, known for its development of TD-SCDMA 3G mobile standard.

"The two sides are nearing wrapping up their deal but they have not yet decided on the price tag," a person close to Datang said.

"But the national pension fund and Datang have decided that the price range will be set between 2.5 billion and 3 billion yuan. However, a final decision has yet to be made," the person said.

The National Social Security Fund (NSSF), will take a 20 percent stake in Datang Telecom Holdings after buying new shares issued by the telecom equipment firm, the person said.

The fund raised will be used to bankroll a hike in its equipment production capacity and increase working capital, the person said.

Last year, State Development & Investment Corp (SDIC) bought a 35 percent stake in Datang Telecom Holdings for 5 billion yuan.

 

 

Source: China Daily