Datang Partners with Wuxi on RMB 5 Bln M2M Fund

National Business Daily, 5/19/10

Chinese TD-SCDMA chipset provider Datang Telecom Technology (600198.SH) announced today that it has partnered with the Wuxi municipal government to establish a RMB 5 bln private equity fund to invest in the Machine-to-Machine (M2M) industry. Datang will sign framework agreements for establishment of the fund with the Jiangsu M2M R&D Center, Wuxi New District Innovation and Entrepreneurial Investment Group, and the Wuxi Guolian Development Group. The fund will be launched with an initial RMB 600 mln from the four founders, each contributing RMB 200 mln, RMB 100 mln, RMB 200 mln and RMB 100 mln, respectively. The fund will raise RMB 1 bln in its first phase, and ultimately raise a total of RMB 5 bln. Datang Telecom will hold 40% of the fund's new management company, which will be established with RMB 10 mln in registered capital. Datang believes this new investment will help position the company in the M2M sector.

Keywords: wireless investment telecom 600198.SH Datang Telecom M2M R&D Wuxi

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