China Unicom said a group of automobile OEMs have invested in its Internet of Vehicle (IoV) unit China Unicom Smart Connection Technology.
Nine strategic investors, including major automobile companies FAW, Guangzhou Automobile Group and Dongfeng Motor Group, among others have picked up a combined 31.2% in Smart Connection Technology.
The financial terms of the transaction were not disclosed.
Following the introduction of strategic investors, Unicom now directly owns 68.8% of shares in the IoV unit, the Chinese telco said in a company statement.
The divestment of stakes is part of the 5G business strategy of Unicom, which aims to launch commercial 5G services in 2020.
Unicom said the new investors have strong strategic synergy with Smart Connection Technology in fields such as automobile manufacturing, industrial internet, technology and resources, and capital investment.
The tie-up will enable Smart Connection Technology to secure better industry resources and competitive advantages to provide connected vehicle and service operation solutions and tap the business opportunities brought by 5G, the company added.
Smart Connection Technology, established in 2015, provides services to major automobile OEMs in both domestic and international markets. According to Unicom, Smart Connection Technology has an over 70% share of the IoV market in China.