China Mobile<0941><CHL>, the country's largest cell phone carrier, has agreed to spend RMB 39.8 billion, or RMB 18.03 per share to acquire a 20% stake in Shanghai-listed Pudong Development Bank Co Ltd<600000>, sources reported.

The subscription price is at a 13% discount to the Shanghai-based lender's closing price on Feb. 25. The deal comes after the Chinese government plans to allow cable network enterprises and broadcasters to enter the telecom service sector, raising the pressure on telecom operators to generate revenues with value-added services.

China Mobile said the investment would increase its earnings per share by 2% after the completion of the deal.

Reportedly, China Mobile will cooperate with Pudong Development Bank on mobile phone payments, mobile bank cards, mobile fund transfer and other forms of mobile finance.

The cell phone carrier is seeking a listing on the planned international board of the Shanghai Stock Exchange as soon as possible, Chairman Wang Jianzhou said recently on the sidelines of the opening session of the annual Chinese People's Political Consultative Conference, a political advisory body in China.