Alcatel-Lucent closes sale of Alcatel-Lucent Enterprise to China Huaxin
Asset divestment forms part of Alcatel-Lucent’s commitment within The Shift Plan to generate at least Euro 1 billion ($1.26 bn) through selective asset sales.
Alcatel-Lucent announced yesterday that it has closed the sale of its subsidiary Alcatel-Lucent Enterprise to China Huaxin Post & Telecommunication Economy Development Center. Cash proceeds to Alcatel-Lucent are Euro 202 million ($254.5m).
As previously announced, Alcatel-Lucent will retain a 15% minority stake in the divested business, as well as maintaining a commercial relationship with it in support of its growth ambitions under new ownership.
The divestment of Alcatel-Lucent Enterprise forms part of Alcatel-Lucent’s commitments under The Shift 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 Euro 1 billion and generating at least Euro 1 billion through selective asset sales by the end of 2015.
Alcatel-Lucent Enterprise is a world leader in communications and networking solutions for businesses of all sizes, serving more than 500,000 customers worldwide.
China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) is an industrial investment company that seeks long-term commercial growth opportunities in the Information and Communications Technologies (ICT) sector.