Geely, Tencent buy stake in train Wi-Fi firm

Automaker Zhejiang Geely Holding Group and tech giant Tencent Holdings Ltd are joining hands to provide wireless internet services on China's high-speed trains by acquiring a stake in the country's bullet train Wi-Fi operator.

The pair won the joint bid to acquire a 49 percent stake in Bullet Train Networks Technology Ltd, a subsidiary of State-owned China Railway Corp, the companies announced on Thursday. The estimated value of the company is 8.78 billion yuan ($1.37 billion yuan). The deal was transacted at 4.3 billion yuan, according to the website of China Beijing Equity Exchange.

Tencent said it would hold 10 percent in the joint venture while Geely will have 39 percent.