Chinese Netcom Asia Netcom Tian selling packaged brand fade

Priced at more than $400 million, about $200 million; China Netcom business internationalization color adjustment desalination

Yesterday, Chinese Hong Kong listed companies (China Netcom Netcom HK-0906) announced, will be $169 million to the SpinnakerCapital company and Ashmore investment management company sold all the shares held by Asia netcom. Coupled with the Netcom Netcom Group Holdings of non listed assets, the total sale price of more than $400 million.

Asia Netcom acquisition is a China Telecom operator for the first time try to capital acquisitions to go out, but also China Netcom former CEO set up his own Chinese in Tian Netcom status success case. As for Tian risk fund, Asia Netcom outright sale, China Netcom Tian era ended, also means that the internationalization of the new CEO Netcom Netcom "Zuo Xunsheng downplayed".

Netcom earns about $200 million

Netcom international business trends more fully reflect the changes in the career of former president Tian Suning netcom.

In 2002, China Netcom Group, Softbank Asia Joint Newbridge investment fund, at a price of $80 million acquisition of Asia Global Crossing submarine cable assets on the verge of bankruptcy, and on the basis of established Asia Netcom Netcom, then from the two partners bought a 49% stake in Asia Netcom, achieved 100% holdings.

The transaction has made it possible for China Netcom to enter the high growth Asian telecom market at a very low price, and to seize the rapid growth of the Asia Pacific telecom market and data flow.

Asia Netcom was subsequently incorporated into the newly established Netcom Netcom Netcom, Netcom, China Netcom and China Netcom, the north of China, which was listed as the "three carriages" before the listing of China netcom. In the subsequent Netcom integration and listing process, China Netcom has established more international, broadband, the three Olympic Games strategy. Tian Suning has been playing the role of China Netcom capital market leader.

More importantly, after the completion of the success of the acquisition of the case of Asia Netcom, so that as a professional manager Tian Suning - just last month to step down Netcom's predecessor CEO, laid its position in China netcom.

It is understood that the acquisition of Netcom Netcom Netcom assets initially invested $80 million, coupled with the subsequent acquisition of another 49% stake in the hands of the hands of the hands of the two partners, the investment is estimated to be no more than $200 million.

In April this year, the first wave of Netcom Netcom will sell the business, Netcom opened the price of about $350 million. The announcement of the sale price reached $400 million, purely from the point of view of investment, the sale of $400 million in Asia Netcom, earned about $200 million. The poor performance of Netcom brokeback"

Netcom's internationalization strategy plays a crucial role in the process of overseas listing, but also took Tian Suning to a new career peak. However, the overall profitability of listed companies with very little indeed, resulting in "Brokeback" move after netcom. In this regard, the industry is not willing to disclose the name of the person to the reporter analysis, the development trend of Netcom's international business with the trend of the industry is not unrelated.

Netcom in November 2004 after the listing, and Netcom Netcom has experienced 4 months of the honeymoon period". March 2005, Tian was sent to Hongkong, a new joint venture PCCW joint CEO, the group is in charge of international affairs. At that time, Goldman Sachs analysts pointed out that, as the number second Netcom, Hongkong should do is to take charge of the headquarters of Beijing to continue his expansion of international M & a strategy, rather than go to the helm of pccw.

In the next two years, in addition to the capital level of PCCW and the introduction of strategic investment in Spanish Telecom, China Netcom's specific international business performance is not obvious. China Netcom 2005 earnings report, the company's international business operations and did not particularly color performance, accounting for only 3.9%. of total operating income

International business is not only the overall level of profitability is not high, its value-added potential is not optimistic about the industry. Wang Yuquan, President of the domestic telecommunications analyst Frost&Sullivan (China) Company believes that the simplification of Netcom's overseas operations, leading to its overseas business is not particularly large room for growth. In addition, Netcom's business in Asia is also a way to operate through the leased line, business value-added potential.

Cui Xiaolong, senior analyst at Analysys International Telecommunications, believes that the Asia Netcom business is the basis of the cable business, not only the low added value of business, but also a certain degree of exclusivity, limited profit margins.

Netcom business transformation main broadband

In the past, China Netcom is only the realization of the internationalization of capital, the business has not taken the door. The main asset of Asia Netcom is the undersea cable to the Asian countries, which can be used for Netcom and other operators to transfer international traffic and data, which was considered to be a powerful way to achieve business internationalization.

With the last month the outgoing CEO Tian, the former do international business in Asia Netcom after the sale has been There is not much left. Before the arrival of the 3G era, as Tian's successor, the new CEO Zuo Xunsheng actively advocated the transformation of business Chinese Netcom will break point positioning in the fixed telephone, broadband and PHS business three.

Zuo Xunsheng was promoted to Chinese Netcom CEO only after a few days, he attended the broadband online Co. in Beijing ceremony and said that the Olympic strategy is the stage of the Olympic strategy, strategy and internationalization strategy to broadband strategy