Neo Telemedia Limited, a Hong Kong-based investment company focused on wireless and satellite broadband services in China, has signed a letter of intent to potentially acquire Hughes Network Systems’ Chinese satellite broadband subsidiary.
Under the…
Neo Telemedia Limited, a Hong Kong-based investment company focused on wireless and satellite broadband services in China, has signed a letter of intent to potentially acquire Hughes Network Systems’ Chinese satellite broadband subsidiary.
Under the terms of the LOI, Neo Telemedia has a 90 day exclusivity period to carry out due diligence and subsequently negotiate terms to acquire China Orient Space Communications Limited (CSCL) from HNS’s wholly-owned subsidiary Hughes China Holdings. Concurrently, it has signed a similar deal to purchase China UnifiedNET Holdings (CUH) from Singapore-based satellite communications solutions provider Next-Generation Satellite Communications.
SatelliteFinance understands that CSCL (45%) and CUH (55%) together own Hughes UnifiedNet Holding, a company which has exclusive authorisation to operate satellite communications business in China and provide broadband satellite communication services to both enterprise and civil governmental customers throughout the country.
Formed in August 2010, Hughes UnifiedNet has already leveraged its satellite operating licences, entering into a 5-year agreement with China Telecom subsidiary Sichuan Telecom to provide value-added satellite–based services and satellite broadband bandwidth across the Sichuan province
Next-Generation Satellite Communications, which was formerly known as Ban Joo & Company, purchased CUH from holding company Kingo Grace for S$53.13m (US$42.5m) in cash and shares back in March 2011. The acquisition was part of Next-Gen’s strategy to increase its footprint in China having initially targeted Indonesia as a key market. The company also owns a data centre facility in Jakarta.
Incorporated in the Cayman Islands in 2002 and currently listed on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange, Neo Telemedia states that its major areas of investment are cable, wireless and satellite broadband internet services as well as electronic media services in the Chinese mainland market.
Hughes was unavailable for comment at the time of going to press.
