(Yicai Global) May 28 -- A subsidiary of China Mobile, one of China's big three state-owned telecoms carriers, has led a CNY2 billion (USD290 million) private placement in video production firm Mango Excellent Media to become its second-largest shareholder.

China Mobile Capital Holdings paid CNY1.6 billion at CNY34.9 (USD5.06) a share -- an almost 19 percent discount from its closing price on May 24 -- Mango said in a statement yesterday. China Life Insurance's asset management unit picked up the remainder of the 57.6 million shares issued for CNY400 million.

Shares in Mango [SHE:300413], a subsidiary under Hunan Television, closed 1.4 percent higher yesterday at CNY43.4, and were trading at CNY43.75 as of 9.57 a.m., up another 0.8 percent.

China Mobile Capital now holds 4.4 percent of the target, which operates internet video platform Mango TV, the fourth-largest in China behind Tencent Video, iQiyi and Youku Tudou. Affiliate Mango Media owns 64.2 percent.

The investment is an important part of China Mobile's plans to transform its business, according to a NetEase Technology report which claims the carrier's video site Migu will cooperate with Mango TV.

Editor: James Boynton