Microsoft has signed an MoU with Lang Chao International, a Chinese distributor of computer components, agreeing to invest US$25 million in the company, according to an announcement made by Lang Chao. The MoU states that Microsoft will hold an initial stake of 10% in the Chinese company, which in the future could be expanded to a maximum of 28%. Lang Chao said the money invested in the company by Microsoft could be used for an acquisition, for the formation of a joint venture to develop and sell software, or for working capital.

 

Lang Chao distributes computer components, such as CPUs, motherboards and DRAM, in China and Hong Kong.. Lang Chao's biggest shareholder is Lang Chao Electronics, holding a stake of 55%. Other major shareholders are Chinese state-owned companies such as China Eastern Assets Management, China Huarong Assets Management and the Finance Office of Shandong Province. Lang Chao's current value is estimated at US$61 million.