ZTE plans share issue to help fund 5G R&D

News Wireless Global 1 FEB 2018
ZTE plans share issue to help fund 5G R&D

ZTE announced plans for a capital increase of up to CNY 13 billion (EUR 1.66 billion) to help fund its research and development for 5G mobile networks. The non-public issue to no more than ten institutional investors  is equal to around 16 percent of its existing share capital. 

ZTE said it will dedicate CNY 9.1 billion to 5G R&D, for which it has a total budget of over CNY 42.8 billion. The remaining CNY 3.9 billion in proceeds from the share issue will go to working capital. 

The company plans EGM 28 March to seek shareholder approval for the capital increase. The price of the issue will be based on the average trading price in the 20 days prior to the issue. 

Categories:

Mobile

Companies:

ZTE

Regions:

Global

Tags:

Financial funding, Research and development

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