ZTE Sells Stake in Subsidiary

ZTE sells shares in Changfei investment and invests in China All Access

November 16, 2012

1 Min Read

SHENZHEN, China -- ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, agreed to sell its 81 percent stake in Changfei Investment to Guangdong All Access and CCBI (Shenzhen). The disposal will generate between RMB 450 million and RMB 850 million financial gain for ZTE, increasing the company’s working capital for business development. At the same time, ZTE (Hong Kong) Ltd., a subsidiary of the company, agreed to subscribe to shares and convertible bonds in China All Access to strengthen the strategic partnership between the companies in telecommunications and enterprise networks.

Changfei Investment is a subsidiary of ZTE, with operations in electronics and telecommunications components distribution, management consulting and investments. CCBI (Shenzhen) is a subsidiary of China Construction Bank. Guangdong All Access is a wholly-owned indirect holdings of China All Access. China All Access, listed on the Hong Kong Stock Exchange, is an integrated information communication application solution provider, with key customers including government departments and business enterprises, and has a solid position in the growing satellite communication and wireless data communication application markets.

Under the agreement with China All Access and CCBI (Shenzhen), CCBI (Shenzhen) will acquire a 30 percent interest in Changfei Investment from ZTE, and the company will sell a 51 percent interest in Changfei Investment to Guangdong All Access. Simultaneously, ZTE (HK) Limited will subscribe to 112 million shares in China All Access, in addition to HKD 201.5 million of convertible bonds as part of its agreement with China All Access. The agreements will strengthen ZTE’s cooperation with China All Access on enterprise networks and TD-LTE.

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763)

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