🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

HP sells $2.3 billion China unit stake to forge partnership with Tsinghua Unigroup

Published 05/21/2015, 09:37 PM
Updated 05/21/2015, 09:43 PM
© Reuters. A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto
HPQ
-

HONG KONG (Reuters) - Hewlett-Packard Co (N:HPQ) will sell a controlling 51 percent stake in its China-based data-networking business to China's Tsinghua Unigroup for at least $2.3 billion, forming a partnership designed to create a Chinese technology powerhouse.

State-backed Tsinghua Holdings' subsidiary Unisplendour Corp Ltd <000938.SZ> will acquire 51 percent of HP's H3C Technologies for at least $2.3 billion, Unisplendour said in a statement to the Shenzhen stock exchange late on Thursday.

The U.S. company also said in a statement on Thursday it will form a partnership with Tsinghua Holdings, affiliated with China's elite Tsinghua University, to create a group in China to house H3C's networking operation alongside its China-based server, data-storage and technology-services businesses.

HP said in its statement it valued its H3C business at $4.5 billion. The company had previously valued the unit at $5.5 billion, people with knowledge of the matter told Reuters last month.

© Reuters. A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto

Western tech companies have struggled for customers in China after former U.S. National Security Agency contractor Edward Snowden's revelations of cyberspying program involving U.S. firms. Many of these Western companies are now seeking local partners or selling off assets altogether to Chinese buyers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.