3com-to-own-100-of-huawei-3com

3Com to own 100% of Huawei 3Com

3Com spends $882 million to increase its stake in its China joint venture from 51% to 100%.
November 29, 2006
3Com Corporation has acquired the 49% of its China joint venture Huawei 3Com that was owned by partner Huawei Technologies. The stake cost 3Com $882 million and takes its ownership to 100%. The agreed price represents an implied equity value for Huawei 3Com of $1.8 billion.

As per the shareholders' agreement between the partners, 3Com initiated a bid process on November 15. Private equity firms TPG, Silver Lake Partners and Bain Capital were also invited to submit bids. Huawei accepted 3ComÆs bid on November 28.

Edgar Masri, president and CEO of 3Com says ôHuawei 3Com has proven to be a well-established, stand-alone business with substantial market share in China and strong potential to expand...
¬ Haymarket Media Limited. All rights reserved.

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