ZTE Sells Shares in Changfei, Invests in China All Access
ZTE PR, 11/16/12
Chinese telecom equipment and terminal manufacturer ZTE (0763.HK; 000063.SZ) has announced that the company will sell its 81% stake in electronics and telecommunications components developer and distributor Changfei Investment to communication application solution provider Guangdong All Access and China Construction Bank International (CCBI). The disposal will generate between RMB 450 mln and RMB 850 for ZTE.
At the same time, ZTE (Hong Kong) Ltd., a subsidiary of the company, has agreed to subscribe to shares and convertible bonds in Hong Kong-based communication application solution provider China All Access (0633.HK).
Under the agreement with China All Access and CCBI, CCBI will acquire a 30% interest in Changfei Investment from ZTE, and ZTE will sell a 51% interest in Changfei Investment to Guangdong All Access. Simultaneously, ZTE (HK) Limited will subscribe to 112 mln shares in China All Access, in addition to HKD 201.5 mln of convertible bonds as part of its agreement with China All Access.
According to ZTE, the transactions form an important step in ZTE's efforts to focus on its core operations, and reorganize shareholdings in its subsidiaries. The partnership between the companies, both listed in Hong Kong, will help increase transparency and generate synergies in TD-LTE and enterprise networks operations.
Keywords: Guangdong All Access wireless mobile network equipment China Construction Bank telecom 000063.SZ 0763.HK telecom equipment ZTE TD-LTE China All Access 0633.HK Changfei Investment M&A 4G
Sending
