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Updated Wednesday, January 25, 2012 0:43 am TWN, AFP

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Taiwan's leading telecom operator looks to aviation

TAIPEI--Taiwan's leading telecom operator Chunghwa Telecom plans to buy a stake in the nation's top airline, spurred by expectations of more visits by Chinese tourists,according to officials.

The plan calls for spending NT$3.5 billion (US$116.4 million) on a 5.74 percent stake in China Airlines, according to a Chunghwa statement.

The deal, approved at a Chunghwa board meeting on Jan. 16, will enable the company to obtain 299 million extra shares to be issued by the Taipei-based carrier, the statement said.

With the investment, Chunghwa Telecom will become the third largest single shareholder in China Airlines, which operates a fleet of 68 aircraft and flies to 80 destinations in 28 countries.

“We've long planned to invest in the tourism sector, but it is a domain we're not familiar with,” a Chunghwa Telecom official told AFP on condition of anonymity.

The official added that the two companies will sign a memorandum of understanding on a partnership soon.

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