China Unicom announced that it has lowered its stake in Smart Connection Technology to 68.88 percent from 100 percent by offering stake to 9 strategic investors.
Smart Connection Technology Company is the Internet of Vehicle (IoV) subsidiary of China Unicom. The divestment of stake is part of the 5G business strategy of China Unicom. The mobile operator aims to start 5G services in 2020. China Unicom earlier revealed 7 cities for 5G network trials.
The nine strategic investors include automobile OEMs such as FAW, Dongfeng, GAC, etc. The objective of Smart Connection Technology is to secure better industry resources and competitive advantages.
The strategic investors have strong strategic synergy with Smart Connection Technology in fields such as automobile manufacturing, industrial Internet, technology and resources, and capital investment, etc.
Smart Connection Technology, established in 2015, provides services to major automobile OEMs. Smart Connection Technology has over 70 percent share in the IoV market in China. It will provide connected vehicle and service operation solutions led by “Smart Driving”, and become a service pioneer in the 5G smart automobile industry.