China Comservice announced its plan to transfer 166 million domestic stocks (or 2.4% of total stock issued) to SGIT for free as specified in the notice dated June 25 from its holding shareholder China Telecom. Upon the transfer, China Telecom will remain the holding shareholder of China Comservice in spite of a decline in the holding ratio from 51.39% to 48.99%; meanwhile, SGIT will duly become a strategic shareholder of China Comservice.
On the very day, China Comservice and SGIT concluded a framework agreement of strategic cooperation on digital new infrastructure.
By initiating SGIT as its strategic shareholder and making a strategic cooperation agreement with SGIT, China Comservice trusts that the parties will further strategic cooperation in information and intelligent transformation of the electric power industry by leveraging each other's strengths and resources. The strategic partnership will promote China Telecom's development in vertical industries, e.g., electric power, and expand its business landscape, so as to boost its growth in China's non-carrier customer market. Besides, as the strategic shareholder joins the company, followed by a package of relevant arrangements, China Comservice will optimize its corporate governance structure and raise the governance standard.