June 7, 2018 / 9:02 AM / a year ago

Zhejiang Geely, Tencent to buy 49 percent stake in China Railway unit

FILE PHOTO: A Tencent sign is seen during the fourth World Internet Conference in Wuzhen, Zhejiang province, China, December 4, 2017. REUTERS/Aly Song/File Photo

BEIJING (Reuters) - Zhejiang Geely Holding Group and Tencent Holdings Ltd (0700.HK) have won a bid to acquire a 49-percent stake in a subsidiary of state-owned China Railway Corp, Geely said on Thursday.

The aim of the deal is to create a three-way joint venture that hopes to provide a one-stop platform for WiFi access to train users, the company added in a statement.

Geely [GEELY.UL] officials would not describe the value of the joint bid with Tencent for the stake in High Speed Network Technology Co, but according to a filing on the China Beijing Equity Exchange the winning bid submitted for the stake was 4.3 billion yuan ($672.52 million).

“Geely sees itself transforming away from pure manufacturing and into intelligent manufacturing and smart services with the development of a fully developed ecosystem,” said a Geely spokesman, when asked about the investment. 

Reporting By Norihiko Shirouzu; Editing by Himani Sarkar

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