State-Owned China Mobile Acquiring 10% of Dahua
China's state-owned and largest telecommunications provider China Mobile is acquiring 10.42% of Dahua (for nearly $1 billion USD), becoming Dahua's second-largest shareholder after Dahua founder Fu Liquan and his wife.
This gives previously privately-owned Dahua substantial China government backing since China Mobile is a state-owned firm that shares the same ultimate parent as Hikvision.
In this post, IPVM examines this news and what it means for Dahua.
China ****** ******** *********
** ****** ** ************, ***** ********* **** ***** ****** is ****** $*** ******* ** ***** stock ****** ** ********* ** **.**% of *** *******:
***** ****** *** ****** *** ****, diluting ******** ************ *** ********* *** investment ********.
****** *** ***** ****** **********, ** Liquan *** *** **** **** ****** owned **.**% ** *****, *** ***** the ***********, *** **** *** *** 33.11% ** *****, *** ********** ******, adding **** ***** *** **** ** change ** *********** *********** (**).
Discount *** ***** ******
***** ****** ******** * *********** ********, paying **** **% ** *** ******* price *** ***** ***** **** *** last ** ****, ** **.** **** per ***** ***** *****'* ***** ***** trades ** ** **** *** *****.
*****, ********* *** ******** *** ********* such * *********** ***** ** ********* (e.g.,***/****** ** ****). *******, ***** ******'* ***** ******** Dahua *********** ********** ****** *****.
Purpose ** **********
***** ******* ~$*** ******* ** **** **** this "********* **********" *** ***** **** purposes.
- ********* "***-***" *********** **** ***** ******. This ******* ** *****, *.*. ***** states ** **** "******* ************* ********* of ******** ******* ********* ***********" **** China ******.
- ********* ******* ******* *** ******* ***** projects, ********* * *** "*********** ************* Base" ** ********, * *** *&* center ** ******** *****, *** * Smart *** ******** ******.
- "********** *****'* ******* *********" *** ******** its *****-********* *****, "******* ******** **** profitability *** *********** *********".
China ****** **********
***** ******** *****'* ******* ******* ********, **** ~1 ********************* ***** $*** ********* ********* ****. *** ********* ***** **** the **** **** ** ** *****-*****,****** ** *** ******** *********** *** *****-***** ****** *********** *** Administration ********** ** *** ***** ******* (SASAC):
***** ** **** *** *********** *********** of *********, **** ***** ******** *********** about **% ** *** *******, *** its****** **********.
Analysis: **** *** *****, ********* ********* ****
** *** ******* ****, **** **** infusion **** ********* **** ***** ******* its ************* *** *&* ************, ***** technical *********** **** ***** ****** ***** help ***** ******* *** ******** ** the '***** ***' *****.
******-****, *** **** **** *** *** government ** *** *****'* ******-******* *********** means ***** *** *** ****** ***** backing, *** *** ****** ** ****** in *** *********** **** *********. **** will **** ***** ******* ******* **** Hikvision, ************ ** *****'* **** ****** for ********** ******** ********.
Confirms ******* ******* *********
**** *********,******* ************ ******* *** ***** ****** **** eyeing * $*** ******* ********** **** Dahua, ****** **** ***** ******** ********,**** ********** ***** "*** ******* ******** ****" (which ** *** *** **). *******'* reporting ** ***** ****** *** **** proven ******* ** **** ************. ** is ******* ******* ******* ***** ********** investing ** ***** ** ************ ******* not ** ** **.
Dahua *** ********* ***** *****
*** ** *****'* **** **************** ** overseas ********* ** **** ****** ********* it *** *** *****-*****. ***, ** partially **.
****, *********** *******. ***** ***.
*** ******** *** ******** *** ***** was ******** **** *** **** *** can ******* **** * **** ******.
******, ****** *.* ***** *****,*** **** *** *** *****-***** ****************** company ***** ****** ** *** **% of ***** **** ***** **** ** still "******* ********* ********** *********",*** *****.
***** **** *********** ********** *******, **** new ********* *** **** ***** *****/***** Mobile's ************* ** ***** **** ****/************ projects, ***** ** ******* **** *** massively ********** (*.*.$* ******* ********* ****** ** *****,$** ****************- *** *** ****** ** *********). This ** ******* ***** ****** **** frequently **** *** **** ***** *** safe **** ********. *** *******, ***** Mobile *** *~*** ******* *** (~$** ******* ***) safe **** ********* **** *** ******* ****.
*******, ***** ****** ** *** * camera ************, ** **** **** *** with ******* **** ******** ************* (*.*. Dahua, *********, ******, ***.).
**** *** ********** ******** ** ***** and ********* ******* ******, **** **** each ***** *** ********* **** ***** city *** ***********. ****** ***** **** camera ************* *** ***** ******, *** so *** ***** *** ** *** major ***** ******* ********* (*.*. ***** Mobile, ***** ******, ***** *******). *** that ***** ****** **** * *********** portion ** *****, ***** ***** ****** an **** ****** ****** ** **** city ********.