Chinasoft pushes into energy with $140M Gisway deal
What's the deal? Chinasoft InternationalDealroom has a profile for this one. Try Dealroom → has agreed to acquire a 29.68% stake in Hangzhou Gisway Information TechnologyDealroom has a profile for this one. Try Dealroom → for US$129.8M, becoming its controlling shareholder. The purchase, made through wholly owned subsidiary Chinasoft Xian, values the A shares at US$7.29 each and will be funded with internal and self-raised cash.
What each side does: Chinasoft is a Hong Kong-listed IT services group focused on technology and software. GiswayDealroom has a profile for this one. Try Dealroom →, listed on the ChiNext Board of the Shenzhen Stock Exchange, is a comprehensive energy service operator engaged in integrated power services.
What's the endgame? The deal marks Chinasoft's strategic push into integrated power and comprehensive energy services, broadening its portfolio beyond core IT. On completion, Gisway becomes a non-wholly owned subsidiary, and its results will be consolidated into Chinasoft's audited accounts.
What could go wrong? Completion remains conditional, and the company has cautioned investors that the acquisition may or may not proceed. The transaction is classified as a discloseable deal under Hong Kong Listing Rules, requiring reporting and announcement but no shareholder approval.
The signal: The move reflects a wider convergence of IT services and energy infrastructure in China, as software groups position themselves around digitalisation of the power sector.
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