Hong Kong based ICT equipment manufacturer China All Access has sold its Hebei Note Communication Technology and Hebei Haoguang Communications Technology units to China RS Group for 1.75 billion yuan (HK$2.14 billion).
China Access plans to use the proceeds from the sale of the two subsidiaries, which mainly provide 2G and 3G mobile communications solutions, to develop its major business segments – ICT high end manufacturing and new energy equipment.
In a statement, the company said its management team considers that the divestiture is a good opportunity at the right time to create value for the company.
The divested businesses are operating in a mature industry with little growth potential, and selling them will increase the company's cash reserves and allow the company to invest in R&D of new ICT as well as other growth initiatives.
Finally, the team decided that the divestiture aligns with China All Access' strategic transformation from a solution provider to an integrated technology and high-end manufacturing company, and will allow the management team to streamline its business structure to support this goal.
China All Access last year decided to set up its mainland China headquarters in Shenzhen, and disposing its operations in Hebei Province will accelerate the reallocation of engineering, sales and marketing resources – as well as operational resources - to Shenzhen.
China RS Group is an investment company focused on sustainable and socially responsible investments based in Hong Kong.