HONG KONG (Reuters) - Chinese telecom equipment maker ZTE Corp (000063.SZ)(0763.HK) will sell its controlling stake in Changfei Investment as part of a plan to shore up working capital and divest non-core assets.
The 81 percent stake is being sold to CCBI and Guangdong All Access for a total of 1.3 billion yuan ($208.6 million) in cash.
CCBI will purchase 30 percent of Changfei for 480 million yuan, while Guangdong All Access will buy 51 percent for 816 million.
The transactions were agreed at ZTE’s board of directors meeting on Friday, according to a filing with the Hong Kong Stock Exchange.
ZTE’s board also approved a plan by its Hong Kong subsidiary to purchase certain shares and convertible bonds of China All Access, which wholly owns Guangdong All Access.
The China All Access purchase is less than 5 percent so is not required to be disclosed under Hong Kong listing rules.
Other shareholders in Changfei, whose subsidiaries do research and development on mobile terminals, include Zhu Weimin and Liu Weili. ($1 = 6.2334 Chinese yuan) (Editing by David Holmes)