Chinese company Tom Group has offered a proposal to buy the shares of Tom Online currently listed on the Hong Kong and Nasdaq share markets, reports Bloomberg. Tom Group already owns 65.7 percent of Tom Online, which sells mobile content in the Chinese market, and has offered to pay a total of HK$1.57 billion (US$201 million) for outstanding Tom Online shares, with the exception of the 10 percent stake owned by independent investor Chau Hoi-shuen. This prices Tom Online shares at HK$1.52 each, or 33 percent more than the closing price on March 2, adding strength to the notion that the group thinks Tom Online is undervalued. The share price of Tom Online slumped after Chinese telcos introduced stronger regulations for mobile content subscription services, which caused Tom Online’s 3rd quarter earnings to fall by 59 percent. The deal still has to be approved of by the shareholders of both Tom Online and Tom Group, and expires on December 31st. Tom Online is now expanding its revenue base—in December it started a joint venture with eBay that will offer an internet trading website under the Tom EachNet brand—eBay provided $40 for a 49 percent share, and Tom Online provided a loan of $20 million for a 51 percent share.