Great Wall Computer to Sell Broadband Subsidiary
Sina Tech, 4/15/10
China Great Wall Computer Shenzhen (000066.SZ) (Great Wall Computer) will join with its sister companies Great Wall Technology (0074.HK) and Shenzhen Kaifa Technology (000021.SZ) in selling the total 50% stake they collectively hold in Great Wall Broadband Network Service for an initial list price of RMB 12.68 mln.
In a public filing, Great Wall Computer said the sale was motivated by the "limited financial contributions" of Great Wall Broadband, and by difficulties in bringing the service into line with the company's key businesses.
An additional condition of the sale is that the buyer must repay the RMB 550 mln in bank loans incurred by Great Wall Broadband, for which Great Wall Technology is guarantor.
Great Wall Broadband shareholder CITIC Networks will retain the right of first refusal for the 50% stake.
Keywords: divest hardware CITIC Networks Great Wall Broadband Great Wall Computer Great Wall Technology Kaifa 000021.SZ 000066.SZ 0074.HK
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