Hengtong Optoelectronics will buy a 51% stake in Huawei Ocean

Hengtong Optoelectronics released the report for the first three quarters of 2019. During the reporting period, Hengtong Optoelectronics achieved operating income of 24.6 billion yuan, a year-on-year increase of 2.05%; net profit attributable to shareholders of listed companies was 1.187 billion yuan, a year-on-year decrease of 43.65%; basic earnings per share was 0.625 yuan / share.

The report disclosed that on October 29, 2019, Hengtong Optoelectronics and Huawei Technology Investment Co., Ltd. signed the “Agreement on Issuing Shares and Paying Cash to Purchase Assets”; on the same day, Hengtong Optoelectronics held the 16th meeting of the seventh board of directors and the seventh board of supervisors. The 13th meeting reviewed and approved proposals related to this transaction, and disclosed relevant documents such as “Jiangsu Hengtong Optoelectronics Co., Ltd. Issuing Shares and Paying Cash to Purchase Assets and Related Transactions Report (Draft)”.

In this transaction, Hengtong Optoelectronics intends to purchase a 51% stake in Huawei Ocean held by Huawei Investment by issuing shares and paying cash. After the completion of this transaction, Huawei Ocean will become a 51% holding subsidiary of Hengtong Optoelectronics.

The transaction price of the underlying assets in this transaction is 1.00387 billion yuan. Hengtong Optoelectronics will invest and issue domestically listed RMB ordinary shares (A shares) to Huawei and pay cash as the consideration for the purchase of the underlying assets. Among them, Hengtong Optoelectronics should invest 47,641,288 non-publicly issued shares in Huawei, and the cash amount that should be paid to Huawei is 301.16 million yuan.

After the completion of this transaction, on the basis of the original submarine cable R&D and manufacturing, submarine communication network operation, and marine power engineering construction, Hengtong Optoelectronics will add the construction business of global submarine cable communication network, further improve the layout of the marine industry, and open up the upstream and downstream industries. chain, further promoting its transformation from a “product supplier” to a “full value chain integrated service provider” in the marine industry.

After the completion of this transaction, Huawei Investment will hold 2.44% of the equity of Hengtong Optoelectronics.
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