HUAWEI agreed to sell Sunday shares end with PCCW battle

PCCW and HUAWEI company Sunday company's stake in the battle soon settled.

PCCW (0008.HK) and Sunday (0866.HK) issued a joint announcement, said HUAWEI has 12 days to confirm in writing, will be in full acquisition of PCCW Sunday shareholders vote.

Currently, PCCW shares of Sunday79%, HUAWEI holds 9.91% of the remaining shares of other shareholders.

In PCCW to arrange a full takeover of Sunday agreement to the shareholders' meeting, the shareholders need to have the remaining shares more than 75% of the vote, PCCW will be Sunday into a wholly owned subsidiary, and cancel the status of listed companies.

In view of the current situation, to determine the contents of the agreement arrangements, and the earliest date of hearing the court will be November 14th.

However, even if HUAWEI has made the above statement, the full acquisition of PCCW Sunday behavior still variable. Because HUAWEI shares accounted for only 50% of the remaining shares less than, with a certain distance from the requirements of the shares of 75%. In addition, PCCW's board of directors pointed out that HUAWEI's intention to make its confirmation is not binding on HUAWEI, it can change the intention at any time.

The industry believes that PCCW's successful acquisition of Sunday is basically a foregone conclusion. Previously, due to the Sunday shares in the hands of the public has less than 25%, approved by the Hongkong stock exchange, Sunday has not fully comply with the rules of listed companies. In accordance with PCCW's bid of HK $296414000 per share, HUAWEI shares held after the sale of the shares, will receive nearly HK $200 million of investment income in the market, the company will receive a total of HK $0.65.

Analysys International Telecommunications analyst Zhou Yi believes that Sunday in Hongkong's 3G business has been using HUAWEI equipment, even if HUAWEI to sell shares in PCCW, still can not change the position of HUAWEI as a supplier of Sunday3G equipment, so HUAWEI to sell or not to sell the shares in the hands of just a tactical rather than strategic.

3G business and 2G business, the need of business equipment and closely cooperate with HUAWEI through cooperation with the Sunday 3G pilot in Hongkong, is the mainland operators that are obvious to people, hold Sunday shares of HUAWEI has not so important.