Chunghwa Telecom raises stake in Senao, sparks speculation of retail network in China

Chunghwa Telecom (CHT) has increased its stake in Senao International, an IT and telecom retain chain in Taiwan, from 31.5% originally to 40.8% after acquiring all of the new shares Senao recently issued in a private placement, according to industry sources. The motivation of CHT's investment nay be to build a retail network in the China market, the sources pointed out.

Senao plans to tap the China market through establishing its own retail network, the sources indicated. Through the additional investment, CHT has become Senao's largest shareholder and secured substantial operating rights, the sources pointed out. Thus, CHT could use Senao's retail network to promote its business in the China market, which would enable it to enter the market sooner than if it continued to wait for the Taiwan government to allow Taiwan-based telecom carriers to invest in China, the sources analyzed.