Taiwanese mobile operator Far EasTone Telecommunications is set to pay TWD5 billion (USD170.4 million) to acquire an 11.58% stake in rival player Asia Pacific Telecom (APT), the Taipei Times reports, citing a joint statement from the telcos. In order to facilitate the deal, Far EasTone plans to subscribe to 500 million newly issued APT shares. The article says that Hon Hai Precision Industry, which currently holds a 40% stake in APT, will see its stake fall to around 36% as a result of the transaction.
In a parallel move, the two parties have also inked a spectrum sharing deal, which will see APT gain access to Far EasTone’s 5G-suitable 3.5GHz spectrum. The report notes that APT will pay TWD9.47 billion to use the frequencies. The telco will also share 22% of the network deployment costs. Far EasTone president Chee Ching said that the agreement will ‘help Far EasTone gain better spectral efficiency and reduce network deployment costs, allowing more leeway for the company to develop 5G-enabled applications.’