Huawei Technologies to sell majority stake in Huawei Marine Systems

Huawei Technologies (HT) plans to sell its undersea telecom cable business (HMS), showed a buyer’s filing on Monday, Reuters reports.

Hengtong Optic-Electric (HOE), an optical telecommunication network products company based in Jiangsu province, said in the filing to the Shanghai Stock Exchange that it signed a letter of intent with Huawei Technologies subsidiary Huawei Tech Investment Co Ltd on May 31 to buy its 51% stake in Huawei Marine Systems Co Ltd via cash and share issuance.

The filing did not disclose a price, and Huawei Technologies declined to provide immediate comment when contacted by Reuters. Trading of Hengtong Optic-Electric shares was suspended on Monday pending deal discussions.

Huawei Marine was established in 2008 as a joint venture with Britain’s Global Marine. The annual report showed Huawei Technologies gained majority voting rights on Huawei Marine’s board in August 2018, with Global Marine retaining a 49% non-controlling interest.

HMS booked 2018 net profit of 115 million yuan (USD 16.66 million) on revenue of 394 million yuan, according to Huawei Technologies’ annual report.

Huawei Technologies Co., Ltd. Shenzhen

Huawei Technologies

Huawei Marine Systems

Hengtong Optic Electric

Global Marine

undersea telecom cable business

optical telecommunication network products

optical communication network

Shanghai Stock Exchange

purchase of ownership stake in Juawei Marine Systems

undersea communication cables

building of undersea communication cables

Huawei Marine Systems profit