China's Bright Oceans Inter-Telecom Corporation, a high-tech firm said yesterday that IBM's China unit acquired a strategic stake of 1.05 per cent or 5.92 million of its shares, from its parent Bright Oceans Corp (Boco) for RMB 49.999 million ($7.37 million).
Post transaction, Boco will hold 134.97 million shares in BOCO Inter-Telecom or 23.97 per cent stake, said the company in a filing with the Shanghai Stock Exchange.
The share sale would enable BOCO Inter-Telecom to develop new products and promote sales of its products in the international market, the company said.
IBM will be the third largest shareholder of BOCO Inter-Telecom after Boco and Bupt Assets Management Co Ltd. BOCO Inter-Telecom has a market capitalisation of 5.29 billion yuan.
Beijing-based BOCO Inter-Telecom deals in software products, total intelligent solutions, and services in telecommunication and transportation industries.
The Company provides information and computer communication technology products and services, including communications operation support systems, business support systems, management support systems.
Other activities of the company include producing patented technology; undertaking systems integration; developing, manufacturing and marketing integrated circuit cards, integrated optical, mechanical & electrical products and import and export.
BOCO Inter-Telecom employs over 1,300 people and had 2009 revenues of 923 million yuan and net profit of 91 million yuan.