Shanghai Securities News, 5/06/08
The China Electronics Corporation (CEC) has put its 45% stake in China Cable Network Company Ltd up for sale on the China Beijing Equity Exchange (CBEX), with an RMB 450 mln price tag - a similar price to that it originally paid. The purchaser must be a state-owned enterprise with registered capital of at least RMB 1 bln, and undertake to invest at least RMB 2 bln in the firm over the next three years. Last year China Cable Network saw losses of RMB 27.86 mln.
An official with CEC's assets operations department indicated that the sale is due to strategic considerations - China Cable Network is not relevant to CEC's core business, hence it is being sold off.