Datang Telecom Mobile Communications Equipment (Datang Mobile), the developer of China's home-grown third-generation mobile technology, is seeking to raise funds via private placement to help finance its 3G project.
Confirming the proposal, Tang Ru'an, Datang Mobile chief operating officer and vice-president, said: 'Mobile communications is highly capital- and technology-intensive. This applies to any company in any country if they want to invest in the mobile communications business.'
Datang Mobile has budgeted US$170 million for the next two years to develop TD-SCDMA (time division synchronous code division multiple access) technology, a home-grown third-generation wireless communications technology.
Datang Mobile a year ago appointed Bank of China International, the investment banking arm of Bank of China, to help restructure the company and to look for strategic investors.
Chinese reports said the company planned to raise between US$50 million and US$100 million via private placement. 'We have set our bottom line, but pledge no ceiling. Certainly the more the better,' Mr Tang said.
Its business partners are among the targets that the company and its financial advisers will approach for investment. Datang Mobile has partnered with Siemens for commercial development of TD-SCDMA.
Last month, Datang Mobile clinched an industry alliance with seven other telecommunications vendors to jointly develop the commercial applications of TD-SCDMA. They are Soutec, Huali, Huawei, Legend, ZTE, China Electronics Corp and China Putian.