China Datacom will acquire 3G value-added service company Supremacy International Limited for 30 million shares.
The acquisition will enable China Datacom to tap into the emerging 3G related value added services market in China.
China is now the largest mobile telecommunication market in the world, accounting for 20% of the world total number of mobile users. China Datacom says it is estimated that China revenues created from 3G related businesses will increase from about US$2.8 to US$28.3 billion from 2006 to 2010.
Consummation of the acquisition is subject to various conditions, including the completion of the process for the 30 million China Datacom shares transferred to the Supremacy shareholders. Closing of the transaction is expected to take place by the end of the third quarter of 2006.