(Yicai Global) March 19 -- Chinese radio frequency solutions provider Shenzhen Tatfook Technology Co. will acquire a 51 percent stake in smartphone terminal maker Chongqing Blephone Technology Co through a deal valued between CNY800 million (CNY126.3 million) and CNY1 billion.
Chinese internet security stalwart Qihoo 360 Technology Co. once invested CNY22 million in Blephone making it the firm's second-largest shareholder. The Beijing-based firm's stake will be unaffected by the deal, according to the transaction's list of main agreement parties. As a result, Qihoo 360 and its famed founder Zhou Hongyi stand to benefit when Blephone becomes part of listed company Tatfook.
Blephone is the biggest mobile phone and smart terminal manufacturer in China's western municipality of Chongqing, Tatfook said in a statement, adding that its market share has ranked steadily among the top ten industry players nationwide for three consecutive years.
Tatfook was originally mainly engaged in the RF sector, though over recent years, it has undertaken a business transformation. It has applied precision processing technologies to consumer electronics and the manufacturing of delicate components for new energy vehicles. This latest extensional acquisition is considered as another step forward in Tatfook's business transformation endeavors.
The takeover marks more positive news for Zhou Hongyi's trading of assets following the listing of Qihoo 360 on the Shanghai Stock Exchange last month through a backdoor listing.