Tencent Tech, 12/28/07
Xi'an Haitian Antenna Technologies (8227.HK) announced that it has reached a deal with Jiazai Telecommunication Equipment, Hantin International Hong Kong and Datang Mobile to purchase Datang Mobile's 35% stake in Jiazai for RMB 45.46 mln.
Datang is to use the money earned from the deal to cover costs of ending TD-SCDMA licensing agreements with Haitian Antenna. On completion of the deal Datang Mobile and Jiazai will terminate TD-SCDMA technology licensing and manufacturing agreements - which means Datang Mobile must return RMB 60 mln paid on signing licensing agreements to Haitian Antenna. This will be partially covered by the money from this deal and the remainder from funds still owed by Jiazai.
Jiazai is a joint venture between Haitian Antenna, Hantin and Datang Mobile, which held 53%, 12% and 35% stakes respectively. The company researches and manufactures TD-SCDMA systems and equipment, multimedia communication systems and wireless transmission systems, and also provides associated consulting and complementary services. Haitian Antenna develops and manufacturers antennae for base stations.
Haitian Antenna's statement revealed that the purchase is due to a Datang Group restructuring which led to the shares coming available.