Mainboard-listed Next-Generation Satellite Communications is expanding its business beyond satellite communications into mobile content development and distribution in China through the acquisition of a majority stake in Star Chariot, a wholly-owned subsidiary of C Media.
The latter is one of China's leading providers in mobile content delivery distribution services.
Next-Gen will acquire a 75 per cent stake in the Star Group from C Media for $27.6 million.
C Media will continue to hold the remaining 25 per cent stake.
Upon the completion of a restructuring exercise, Star Group will hold certain existing businesses of C Media in the distribution of static images, video and audio content through cellular, wireless and satellite networks to mobile devices and the Internet, development of mobile applications, as well as the provision of technical support services for mobile content distribution technologies.
The acquisition, which is subject to regulatory and shareholder approval, will thus allow Next-Gen to expand its business activities from pure communications infrastructure services into the emerging mobile content industry in China, where demand for mobile contents and applications is on the rise.
Next-Gen executive director Lam Pang Chuang said: "The proposed acquisition brings us closer to realising our vision of becoming more than just a broadband infrastructure solutions provider, and will yield us a sustainable business that can contribute positively to the Group."