China Mobile drops Far EasTone stake deal

China Mobile drops Far EasTone stake deal

Dylan Bushell-Embling  |   April 19, 2013
China Mobile has called off a plan to acquire a 12% stake in Taiwanese operator Far EasTone, with the deal scuttled by restrictions on mainland investments in Taiwan's telecom sector.
In a regulatory filing, China Mobile announced that the agreement to purchase 444.3 million FarEasTone shares had been terminated because “some of the conditions precedent [to the deal] have not been satisfied.”
The operator was referring to Taiwanese rules restricting Chinese companies from investing in tier 1 telecom operators.
If and when these restrictions are lifted, the operators will consider reviving the deal, China Mobile said.
In the interim, the two companies have signed a framework agreement to “jointly explore opportunities to continue broad-based cooperation in a number of areas in mobile telecommunications businesses in the future.”
The share purchase deal was first announced in April 2009, after the Taiwanese government introduced new laws allowing Chinese companies to invest directly in Taiwan.
At the time, China Mobile had arranged to pay TW$17.77 billion ($594.7 million) for the 12% stake.
But the easing of restrictions has still not been extended to the telecom sector, and Taiwan's Investment Commission has indicated it is not considering opening tier 1 operators to Chinese investment due to security concerns. 
Dylan Bushell-Embling


TelcoStrat 288

May 7-8, Jakarta
Join telco CxOs from around Asia to discuss:
• Changing the way telcos operate
• New service offerings
• Restructuring for innovation
See the conference agenda >>

Transmode's Sten Nordell explains why Asia is ahead of the game in mobile fronthaul, and how WDM-PON’s time has finally come


Frontpage Content by Category with Image

Activists petition for the withdrawal of the Newborn-to-Toddler Apptivity Seat full website

© 2012 Questex Asia Ltd., a Questex Media Group company. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster.