JINAN, Sept. 18, (Xinhuanet) - Chinese IT firm Langchao International has offered Microsoft, its long-term strategy partner, redeemable preferred shares worth 25 million US dollars, according to an agreement signed here recently.

    The shares are on a six-year term with an annual interest rate of six li (or 0.001 yuan), said sources with the Langchao Group, headquartered in Jinan, capital of east China's Shandong Province.     

    According to the agreement, Microsoft will subscribe for the shares in three phases: 13-million-dollar shares in the first phase, and then another 5-million-dollar shares after buying over 30 percent of shares of Shandong-based Tongyong Software, a company under Langchao. Langchao is expected to offer the remaining 7-million-dollar shares to Microsoft after the two firmsjointly open a new company focusing on e-government business.

    The business deal came two weeks after the US software giant announced its 25 million US dollars investment in Langchao for developing advanced management software.

    Microsoft's investment will mainly be used to help Langchao improve ERP, e-government software, and software outsourcing, according to the agreement signed by the two companies. Enditem