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Dr. Peng to Invest RMB 25 Mln in Two Cloud Computing Firms

China Securities Journal, 9/09/11

Chengdu-based telecom services provider Dr. Peng Telecom & Media Group (600804.SH) has announced plans to invest RMB 24.99 mln in two companies as part of its cloud computing platform strategy. Dr. Peng and its wholly-owned subsidiary Shanghai Daofeng Investment will respectively invest RMB 5 mln and RMB 4.8 mln in Beijing Xiwang Computer Technology. After the investment, Xiwang's registered capital will grow from RMB 2 mln to RMB 20 mln, with Dr. Peng holding a 25% stake and Daofeng holding 24%.

Dr. Peng and Daofeng will also invest RMB 7.75 mln and RMB 7.44 mln, respectively, in Beijing Shuwa Science & Technology, increasing the company's registered capital from RMB 1 mln to RMB 31 mln, and giving Dr. Peng a 25% stake and Daofeng a 24% stake.

The stake in Xiwang will help Dr. Peng deliver anti-virus and information security value-added services to small and medium-sized enterprise clients, while Shuwa will expand the company's broadband access business nationwide, and provide technology for traffic control, network optimization, cloud caching, cloud servers, and CDN services. Both will contribute to building Dr. Peng's cloud computing platform.

Editor's Note: Xiwang has licenses to manufacture and assemble computers and related equipment, sell print and electronic publications, and provide internet services. Shuwa is primarily involved in online content and traffic management, content caching, and content delivery solutions.

Keywords: M&A information security broadband investment strategy telecom CDN anti-virus broadband access cloud computing Dr. Peng 600804.SH VAS corporate user

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