News Alert: Shareholding increase by controlling shareholder
- CM’s controlling shareholder CMCC acquired 0.058% of CM’s share outstanding for Rmb0.71 billion on 21 Jan 2022
- CMCC will further increase shareholding in CM’s A-share by Rmb3-5 billion, representing 0.25-0.4% of share outstanding based on latest A-share close price
- Expect neutral share price reaction to H-share as CMCC’s shareholding increase mainly served to stabilise A-share price
What’s New
– China Mobile (CM, 941 HK) announced that its controlling shareholder China Mobile Communications Group (CMCC) acquired 0.058% of its share outstanding for Rmb0.71 billion, on 24 Jan 2022 before market open.
– CMCC’s shareholding of CM increased to 69.895% after the A-share acquisition.
– CMCC planned to further increase shareholding of CM’s A-share by Rmb3-5 billion by the end of 2022 without specific price range, which represents 0.25-0.4% of CM’s share outstanding based on A-share close price on 21 Jan 2022.
Our View:
– We expect neutral share price reaction as the shareholding increase should mainly serve the purpose of stabilising the A-share price.
– We currently rate BUY on the counter with TP of HK$68.6.