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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