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China Mobile Clinches HP Tie-up
China's largest wireless phone operator China Mobile (Hong Kong) Ltd said Thursday, January 11, a unit of US computer maker Hewlett-Packard Co would subscribe for up to seven percent in its majority-owned subsidiary and pay up to US$35 million in cash.
China Mobile said an indirect, wholly-owned subsidiary of Hewlett-Packard, Hanover Asia-Pacific Investment Ltd, would subscribe for shares in the enlarged issued share capital of Aspire Holdings Ltd in cash for a maximum subscription price of US$35 million as part of a strategic alliance.
It said Hanover would initially subscribe for 13,49 million ordinary Aspire Holdings Ltd shares for US$8.5 million, representing HK$4.90 per ordinary shares. The remaining shares would be subscribed for at the same price.
Aspire, which deals with systems integration, product development and technical support for mobile data systems, would engage Hewlett-Packard as preferred supplier for hardware and related services.
Hewlett-Packard would, in turn, treat Aspire and its subsidiaries as its preferred customers, entitling them to its best customer price and financing options for Hewlett-Packard products and services.
Both companies plan agreements in the areas such as licensing and technical assistance, joint research and development and joint sales and marketing.
China Mobile also said it had agreed to subscribe the entire redeemable preference stock in Aspire for US$20 million in cash.
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