Shenzhen Transsion Holdings Co., the parent company of Tecno mobile and other smartphones dominating the African mobile market is planning to go public.
However, Transsion is looking at going public on the Chinese market in a different way.
According to Bloomberg reports, Shenzhen Transsion Holdings Co., which accounts for nearly 30 percent of the African smartphone market, plans to transfer a controlling stake to Shenzhen-listed Shimge Pump Industry Group Co. via an asset and share-swap deal, according to a stock exchange filing on Thursday. The deal remains in negotiations but the closely held company — which sells phones under the Tecno brand among others — ultimately aims to gain Shimge’s stock listing, Transsion spokeswoman Li Huijun said.
Transsion was founded by Zhu Zhaojiang. According to Bloomberg data, the company shipped nearly 12 million smartphones to Africa in the first three quarters of last year, helping it leapfrog Samsung Electronics Co. and Apple Inc. to become the largest player on the continent, according to researcher Canalys. The Chinese company has become the biggest seller in countries from Kenya and Nigeria to Senegal.
Based data compiled by Bloomberg, few of China’s biggest smartphone vendors, from Huawei Technologies Co. to Xiaomi Corp., are publicly traded. Li told Bloomberg that Transsion is still exploring options with Shimge Pump and no financial details have been finalized. Shimge Pump shares have been halted pending further announcements.
“One of the biggest reasons for their success was their distribution strategy where they managed to attract leading local resellers through the affordable offerings,” said Tarun Pathak, an analyst with Counterpoint Research.
Transsion has a multiple brand approach. The company has since expanded its offering into tablets, phablets and personal computers.