Major mobile internet firm Cheetah Mobile Inc., just announced that Beijing Kingsoft Internet Security Software Co., Ltd., a wholly-owned subsidiary of the Company, has entered into a capital injection agreement with Beijing OrionStar Technology Co., Ltd., an artificial intelligence company incorporated in China, Pingtan Dingfu Investment Management Co., Ltd., Beijing Kangyuan Heart Management Consulting Center Limited Partnership, and the existing shareholders of Beijing OrionStar.
The agreement calls for Beijing Security, Pingtan Dingfu, and Kangyuan Heart to subscribe to newly issued equity interest in Beijing OrionStar to the tune of approximately U.S.$40.39 million. Beijing Security is expected to hold 29.55 percent of equity interest in Beijing OrionStar.
“Within two years after the completion of the transaction, Beijing Security is entitled to a warrant to subscribe to newly issued equity interest in Beijing OrionStar in the future with an equivalent value of up to $62 million at the same unit subscription price as the current investment, subject to certain conditions and adjustments as provided in the Capital Injection Agreement,” the company tells MAW.
Cheetah Mobile provides leading apps for mobile users worldwide and connects users with personalized content on its mobile platform. Its products, including popular utility applications like Clean Master, CM Security, and Battery Doctor, help make users’ mobile internet experience smarter, speedier, and safer.