China Mobile to take 20% stake in Shanghai Pudong Development bank

China Mobile will buy a 20% stake in Shanghai Pudong Development bank for US$5.83 billion, Dow Jones reported. China’s largest mobile carrier hopes the move will help it to expand into mobile financial services. Under the terms of the deal, China Mobile subsidiary Guangdong Mobile will purchase 2.21 billion new shares in the bank for RMB18.03 (US$2.64); the investment is subject to a three-year lockup period. The agreement will help Shanghai Pudong Development Bank to meet stricter capital requirement rules instituted this year. If approved by shareholders and regulatory agencies, China Mobile will become the bank’s second-largest shareholder, after Shanghai International Group and its affiliates.