Chinese telecom device maker ZTE announced that its subsidiary Nubia plans to increase its capital and stock by introducing Suning Rundong, a subsidiary of Suning, as an investor.
At the same time, ZTE will give up its priority of subscription rights in the listed business.
According to the report published by ZTE, Suning Rundong will invest CNY1.93 billion in Nubia. On the completion of the investment, Suning Rundong will own a 33.33% stake in Nubia; while ZTE will hold a 60% stake and Yingcai Investment will hold the remaining 6.67% stake.
Of the CNY1.93 billion investment, CNY39.582 million will be included into Nubia's registered capital and CNY1.89 billion will be included into capital accumulation fund.
With the completion of the capital and stock increment, Nubia's board will be formed by seven directors, including four assigned by ZTE, two assigned by Suning Rundong, and one assigned by Yingcai Investment.
ZTE said this capital increment will solve Nubia's capital source issue in a certain development period. It will help Nubia enhance brand investment strength and improve its derivative business ecological chain.
How is Sunning going without a rubish after-sales service???