(Yicai Global) March 2 -- Shenzhen Transsion Holdings Co., owner of the best-selling Chinese mobile phone brands in Africa, is looking to offer equity on China's A-share market via a backdoor listing. The news comes after another company announced that it would take a controlling stake in Shenzhen Transsion Holdings Ltd., which owns the popular phone brands Itel, Infinix and Tecno.
Shimge Pump Industry Group Co. said in a stock exchange filing that it will buyout Shenzhen Transsion Holding, which accounts for 30 percent of the African market, through an asset and share-swap deal to be funded by a new share issue.
Transsion is a relatively lesser-known Chinese phone maker but is often referred to as the "king in Africa." Earlier media speculation suggested that the firm was planning a backdoor listing on the A-share market using another listed company as the shell. Shimge Pump Industry's announcement indicates that Transsion will soon be floated on China's stock market.
The smartphone and electronics company has a registered capital of CNY720 million (USD113 million) and specializes in design, development, production and sales of mobile communication devices. Its core product, smartphones, are mostly sold in such emerging markets as Africa, the Middle East, South Asia, and Southeast Asia.
Its smartphone shipments to Africa overtook those of Samsung and Apple last year, making it the continent's biggest player and the best-selling brand. Ignoring the Chinese market, it has built its sales in various African countries, offering low-cost devices with a price range of USD15 to USD400.
Transsion has more than 4,000 employees in Africa, creating a formidable market barrier for its rivals. It has a total of four mobile phone brands including Spice in India, a phone parts brand Oraimo, a home appliance brand Syinix and an aftersales service brand Carlcare.