VelaTel snaps up MVNO China Motion Telecom

28 Nov 2012

VelaTel Global Communications has announced the acquisition of China Motion Telecom (HK), a mobile virtual network operator (MVNO) with more than 100,000 customers in Hong Kong. VelaTel Global is paying HKD45 million (USD5.8 million) to purchase 100% of the capital stock of China Motion, which partners with mobile carriers in Greater China to provide wireless network services to retail customers using its own billing support systems, customer service and sales personnel. ‘Our management and our investors are very pleased with the China Motion acquisition,’ stated VelaTel’s president, Colin Tay, adding: ‘Not only are the financial terms very favourable from the standpoint of purchase price compared to enterprise value, the real value comes from the synergies with our other divisions and the operational experience China Motion provides.’

Hong Kong, VelaTel Global Communications (formerly ChinaTel)