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November 11, 2009 21:26 PM
Redtone Taking Full Control Of Hong Kong Unit
KUALA LUMPUR, Nov 11 (Bernama) -- REDtone International Bhd through its wholly-owned subsidiary REDtone Technology Sdn Bhd has acquired Kerry Telecommunications (Shanghai) Ltd's 25 per cent stake in REDtone Telecommunications (China) Ltd (RTCL) for HK$20.5 million (RM8.942 million).
The acquisition enabled it to have full control over RTCL and its subsidiaries in China as it already holds the balance of 75 per cent interest, said REDtone International.
The acquistion is expected to contribute positively to the group's future earnings, it said in a statement Wednesday.
RTCL has net asset attributable to equity shareholders of HK$51.7 million (RM22.6 million) and retained loss of HK$6.8 million (RM3 million).
REDtone International expects RTCL's telecommunication business to contribute positively towards the group's revenue and profit as it has been developed to a healthy level currently and continued to expand the market there.
It said that RTCL will explore venturing into related and synergistic businesses in line with the new growth areas of telecommunications, mobile and mobile Internet by partnering incumbent telecom companies with the group providing technology, marketing and content services.
-- BERNAMA
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