XOX partners China VC firm for 5G deployment

XOX told Bursa Malaysia that its wholly-owned subsidiary XOX Media Sdn Bhd signed a head of agreement (HoA) with Jiangsu Sulian Asset Management Co Ltd (Sulian Capital) to form a non-circumvention and commercial agreement

PETALING JAYA: Virtual mobile network operator XOX Bhd has partnered a China-based venture capital firm to deploy 5G mobile network in the region.

XOX told Bursa Malaysia that its wholly-owned subsidiary XOX Media Sdn Bhd signed a head of agreement (HoA) with Jiangsu Sulian Asset Management Co Ltd (Sulian Capital) to form a non-circumvention and commercial agreement.

Following the agreement, XOX seeks to link up with an undisclosed Chinese telecom provider, which Sulian Capital represents, for the 5G network deployment.

In return, Sulian Capital will receive a 10% free carry on profitability from any eventual partnership signed with the undisclosed Chinese telco.

“This non-circumvention agreement is designed to secure the introducing party’s interest in the 5G project, so that more concrete discussions can take place, ” stated XOX.

While the identity of the Chinese telco remains unidentified, XOX said an indication by Sulian Capital has narrowed the list to one of the top three players in the world’s second largest economy – China Mobile, China Telecom or China Unicom.

The HoA will be effective for 18 months from July 27, but could be terminated earlier if there is mutual consent from both parties or in the event of insolvency of either party.

“The HoA will not have any effects on the share capital and shareholding structure of the company and is not expected to have any material immediate effect on the earnings per share, net assets per share and gearing of XOX for the financial year ending Sept 30, ” XOX said.