French vendor Alcatel-Lucent has completed the sale of a majority stake in its Alcatel-Lucent Enterprise subsidiary to China Huaxin Post & Telecommunication Economy Development Center.
Alcatel, which will retain a 15% interest in the unit, expects to…
French vendor Alcatel-Lucent has completed the sale of a majority stake in its Alcatel-Lucent Enterprise subsidiary to China Huaxin Post & Telecommunication Economy Development Center.
Alcatel, which will retain a 15% interest in the unit, expects to receive cash proceeds of €202m (US$255m) from the transaction.
The equipment company entered exclusive talks with China Huaxin in early February, after receiving a binding offer from the technology investment company for the unit.
At the time, it was reported that Lazard was advising Alcatel on the sale. The subsidiary, which claims to have over 2,700 employees worldwide and operations in more than 80 countries, will be headquartered in Colombes, near Paris.
Alcatel said in a statement today that the divestment forms part of a strategic plan launched in June 2013 to “refocus itself as a specialist in IP, cloud and ultra-broadband access, while realigning its balance sheet, implementing cost savings of €1bn and generating at least €1bn through selective asset sales by the end of 2015”.
In August, the vendor revealed that it was considering launching an IPO for part of its submarine cables unit in the first half of 2015.