(Yicai Global) May 14 -- The controlling shareholder of DHC Software Co. and Tencent Cloud Computing (Beijing) Co., Tencent Holdings Ltd.'s cloud affiliate, are in talks to initiate a series of cooperation projects covering important public and corporate sectors, the company said.
Both parties plan to have extensive cooperation in the fields of healthcare, smart city, finance, and electricity and currently negotiate the terms and conditions of a comprehensive deal, Beijing-based DHC said in a statement today.
The two sides will sign an agreement upon completion of due diligence and the confirmation of key terms by Tencent Cloud, the statement added. The deal is expected to reach or surpass CNY1 billion (USD158 million) and to have a major impact on the DHC's financial position and operating results.
DHC provides software and information systems solutions for various users covering applications and technology platform, finance, telecommunication, transportation, medical care, power, defense, scientific research, coal, petrochemical, petroleum, insurance, and manufacturing.
The firm's controlling shareholder, Chinese billionaire Xue Xiangdong, also negotiates issues related to capital cooperation with Tencent, which the company said will not affect the controlling shareholding structure of the firm.
DHC Software has suspended the trading of its shares today, which will be effective for 10 days.
China's internet heavyweights such as Tencent and Alibaba Group Holding Ltd. increasingly offer data storage and software services on the cloud to corporate and government clients as more businesses opt for buying services rather than equipment.
Editor: Mevlut Katik