It was announced today that ZTE (HK Stock code 00763) made a "substantial acquisition" in China All Access (HK Stock code 00633).
ZTE agreed to subscribe to 112 million new shares of CH ALL ACCESS (00633.HK), which represents 8.43% of the enlarged share capital, and to $201.5 million two-year 10% convertible bonds of the latter.
The net proceeds of $397 million will be used as general working capital for China All Access.
The ZTE acquisition of China All Access purchase re-affirms our earlier STRONG BUY rating of CHINA ALL ACCESS as below (made here: http://besthongkongstocks.blogspot.com/2012/11/china-all-access-hk-stock-code-00633.html):
Target price (12 months) $2.4
Target price (24 months) $3.5
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