(Bloomberg) -- China Mobile Ltd.’s parent plans to increase its stake in the wireless carrier by buying as much as 5 billion yuan ($789 million) of its Shanghai-traded shares.
China Mobile Communications Group Co. intends to buy 3 billion yuan to 5 billion yuan of the listed firm’s A shares by the end of this year, according to a filing with the Shanghai stock exchange Sunday. The company didn’t specify a purchase price for the shares.
The proposed stake increase demonstrates China Mobile Communications’ confidence in China Mobile’s future development and recognition of its longterm investment value, according to the exchange filing. The move will also boost investor confidence in the company, it said.
On Friday, China Mobile Communications bought about 710 million yuan of shares, representing a 0.058% stake in China Mobile, according to the filing.
China Mobile, China’s largest wireless carrier by sales, closed at 57.58 yuan on Friday in Shanghai, matching its offering price. The stock had begun trading in Shanghai on Jan. 5, touching a high of 63.58 yuan. Its Hong Kong-traded shares closed 1.5% higher on Friday at HK$51.25.
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