- Gohigh Data Networks Technology Co., Ltd (000851.SZ) has recently announced plans to introduce four strategic investors to its wholly-owned subsidiary Beijing Gaoyang Jiexun Information Technology Co., Ltd., as reported by Sina Tech.
- Subsidiaries of Alibaba Group’s (BABA.NYSE) financial arm Ant Financial and Chinese taxi-hailing app Didi Chuxing are said to be among the new strategic investors.
- Gohigh Data Networks Technology has not yet commented on these plans.
Why It Matters:
- Founded in 2005, Beijing Gaoyang Jiexun mainly provides information technology services and wholly owns Chinese third-party payment platform 19pay. 19pay holds a license issued by the regulator to operate an online payment business and the license will expire in 2022.
- The four strategic investors are namely Shanghai Yunxin VC Co., Jiaxing Orange Investment, Beijing Jinwu VC, and Beijing Digital Changyou Technology Center. Shanghai Yunxin is wholly-owned by Ant Financial, and Jiaxing Orange is a subsidiary of Didi Chuxing’s operator Beijing Orange Technology Co. After the deals, Shanghai Yunxin and Jiaxing Orange will respectively hold 16.15% and 3.14% stakes in Beijing Gaoyang Jiexun.
- Gohigh Data Networks Technology is principally engaged in the enterprise information service business, the information technology (IT) service business, and the terminal marketing business. Rumors had surfaced in the market as early as March stating that Didi planned to acquire 19pay for RMB 430 million in order to indirectly obtain an online payment license.