Datang Telecom Group has signed a letter of intent with the People's Insurance Group.
According to the agreement, PIG's subsidiary, the People's Insurance Company of China, will invest CNY1.5 billion into Datang Telecom's affiliate Datang Mobile to obtain 13% of its stake.
Wu Yan, president of PIG, says that this is the first large investment that they have ever made into the communications industry. Datang Telecom previously planned to sell the 13% stake of Datang Mobile for CNY1.001 billion, so PICC's offer of CNY1.5 billion for the stake must be satisfying.
In other news, Chinese media also reported that Datang Mobile's general manager Tang Ru'an will resign from the company.