BEIJING-China Mobile said it will buy wireless networks in 10 of China’s provinces from its parent company for $3.65 billion. The acquisition gives China Mobile a nationwide footprint, although the new networks are in some of China’s poorest provinces.
Industry analysts said the purchase price is on the low end of expectations. The purchase values the networks at 2.85 times 2004 forecasted earnings before interest, taxes, depreciation and amortization. China Mobile will pay its parent company $2 billion in cash once the deal closes, with the remainder to be paid over time.
Wang Xiaochu, China Mobile’s chief executive, said the company plans to look at investments outside its core business, such as partnerships with credit card companies, to maintain its growth.
