ZTE Plans to Form a Joint Venture to Sell Its Mobile Phone Business, Valued at Around 40 Billion
ZTE is in talks with a major internet company about a mobile phone business partnership, planning to package the business and establish a joint venture with ZTE, the internet firm, and a state-owned enterprise from Shanghai. The internet company intends to invest around 8 billion yuan, while ZTE aims to proceed with a business valuation of approximately 40 billion yuan. The final valuation, ownership stakes, and transaction structure are still under discussion, as is the scope of assets…
ZTE Plans to Form a Joint Venture to Sell Its Mobile Phone Business, Valued at Approximately 40 Billion Yuan
ZTE Corporation is in talks with a major internet company regarding a partnership for its mobile phone business. The plan is to package the mobile phone business and establish a joint venture jointly owned by ZTE, the internet company, and a state-owned asset management entity from Shanghai. The internet company is expected to contribute around 8 billion yuan, while ZTE hopes to proceed with a business valuation of approximately 40 billion yuan.
The final valuation, ownership stakes, and transaction structure are still under discussion, as is the scope of assets involved in the deal. An employee of a relevant company stated that the two parties began discussions in April this year and only finalized the cooperation model in September. The announcement, originally planned for late October, has reportedly been postponed.
Sina Finance