Shanghai Securities News, 11/21/07
The China Academy of Telecommunication Technology (CATT) is offering its 13% stake in Datang Mobile for sale on the Shanghai Stock Exchange, with an RMB 1 bln price tag. CATT is reserving the right to withdraw the offer if a deal is not completed by December 31. Preferential treatment will be offered to purchasers able to provide financial services for Datang Mobile in China, and shares will not be sold to any Datang Mobile competitor.
Datang Mobile is a state-owned enterprise, with registered capital of RMB 158 mln. It researches and produces TD-SCDMA mobile communication systems and handsets. As of December 31, 2006 it had assets worth RMB 7.108 bln, and made a loss of RMB 111 mln in 2006.
Wholly-owned CATT subsidiary Datang Telecom Technology holds a 79.52% stake in Datang Mobile, with CATT holding 13% of the firm's shares directly.