(Yicai Global) Dec. 6 -- Zhongxing Telecommunication Equipment Corporation [HK:00763], one of the top five largest smartphone manufacturers in China, will acquire 48.04 percent of the equity in a Turkish telecom service company, for USD101.3 million.
The Shenzhen-based listed company will purchase 48.04 percent of the total equity in NETAŞ TELEKOMÜNİKASYON A.Ş., a publicly-listed company in Turkey through its Dutch subsidiary, OEP Turkey Tech. B.V. ZTE will become the largest shareholder of the Turkish company once the deal is complete.
Through negotiations, it was determined that the price of the acquisition will not be less than USD95,981,703 and is capped at USD101,280,539, ZTE said.
ZTE disclosed that the target company is listed on the Turkish stock exchange. Similar deals do not typically trigger a mandatory bid but the acquisition still needs to be approved by the Turkish Capital Markets Board.
In the unlikely event of a mandatory bid being triggered, the total price of the mandatory tender offer will not exceed USD130 million.
The deal will help ZTE boost business development in Turkey through effective exploitation of the target company's advantageous resources.