Update: China Mobile Discloses Vertical Base Operations Plan
Sohu IT, 12/06/12
China Mobile (NYSE: CHL; 0941.HK) has confirmed that, following the announcement of plans to spin-off its mobile internet base, the company will spin-off its remaining eight bases, some of which will be merged into the company's mobile internet base and some of which will become independent companies.
China Mobile president Li Yue explained in an interview with Sohu IT that China Mobile will establish specialized companies that best fit the business circumstances of each one of its bases, and won't simply "put all of its businesses in one basket." China Mobile will spin-off its mobile internet base and its M2M base into separate companies in the coming year.
When asked about IPO plans for the base companies, Li responded, "The first step is the professional operation of our companies; we will consider whether or not to diversify shareholdings in the future."
Editor's Note: For more background on this topic, please see "China Mobile to Merge Bases in New Mobile Internet Subsidiary" MD 12/05/12 issue.
Keywords: strategy Li Yue China Mobile wireless M2M CHL spin-off 0941.HK mobile Internet
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