CDC (NASDAQ: CHINA) subsidiary CDC Technology (8006.HK) announced that its Extraordinary General Assembly yesterday approved the company to no more than 122 million Hong Kong dollars to buy a SP Mainland company "Time Jie Cheng." But hidden behind the deal is CDC in the wireless value-added business ambitions.
Jie Cheng SP times in the Mainland in the medium size. Expand the SP regulation in the previous storm fined several times, in the Ministry of Information Industry has also been criticized earlier this month. The CDC technology is to take down the times the purchase price Jie Cheng.
This year in August, also the SP industry is at the lowest valley, the CDC announced a technology gone against the tide 198 million dollar shot in the upper age limit acquisition Jie Cheng, causing concerns of the industry.
However, about two months later, Jie Cheng CDC technology and the times changed the agreement, the purchase price limit quietly down nearly 40%. Moreover, according to the agreed purchase prices are still with the company over the next 15 months, linked to financial performance.
In contrast with the strong prices down, the CDC has just completed a 168 million U.S. dollars the U.S. private placement, "ammunition" adequate. One SP who said that "SP is now the company has become vulnerable groups, to find suitable buyers are lucky to get, which are 'capital' and buyers on wild speculations."
Chief Financial Officer of China.com, said Dr. Xiaowei Chen, Jie Cheng customers times more concentrated in the northeast and the western provinces of China, while the CDC's market share in mobile value-added services more concentrated in coastal areas all around, both sides are highly complementary.
But hidden behind the deal is CDC in the wireless value-added business ambitions. SP in the mainland's major general since the third quarter performance of remediation policy has been a substantial decline in the same time, the CDC recently announced that its wireless high-profile business continuity in March adverse economic growth.
One person familiar with the CDC gave away, CDC intends to nurture the wireless value-added services into their software, online games business after another pillar. And because the software and online games business is likely to spin-off to the London market in the near future, the future profitability of the wireless value-added services on the Hong Kong-listed and Nasdaq-listed CDC CDC technology investment group is crucial.
CDC (NASDAQ: CHINA) Peter Yip, CEO further stressed: "In order to achieve the CDC's software, online games and mobile value-added services to the three core businesses made the dream of the world's top 10, the company has raised 3.8 billion in the global acquisition and internal business development. "