China Mobile Chairman in Talks for Taiwan Investment

­China Mobile's Chairman, Wang Jianzhou held a private meeting with a senior official from Taiwan's Ministry of Economic Affairs to seek approval for the company's plan to buy a 12% stake in Taiwan's Far EasTone Telecommunications, the Taipei Times reported.

Hwang Jung-chiou, vice minister of Economic Affairs, said that the two discussed the investment, but did not disclose any details.

"We believe the timing is ripe [for approving the deal]," Wang told reporters in Taiwan.

In April, the Hong Kong listed, but state controlled company said that it had an agreement to buy a 12% stake in Far EasTone Telecommunications for around NT$17.77 billion (US$529 million), though a new shares offering. The deal is the first between mainland and Taiwan based telecoms firms, but is subject to clearance from the Taiwan government.

Upon the completion of this transaction, the parties agree to cooperate closely in a number of areas, including procurement, roaming services, data and value-added services, and network and technology advancement.

Wang is in Taiwan to meet with government officials and various potential telecoms suppliers.

On the web: Taipei Times

Posted to the site on 29th August 2009