ZTE sells stake in investment subsidiary

Chinese telecom equipment maker ZTE Corp on Friday sold an 81 percent stake in an investment subsidiary for 1.3 billion yuan ($207.8 million), in a bid to relieve financial pressure and support its core business development.

In a filling with the Hong Kong stock exchange, ZTE said it will sell a 30 percent stake in Shenzhen Changfei Investment to CCBI (Shenzhen) for about 480 million yuan. Changfei Investment is a ZTE subsidiary engaged in industrial investments and mobile terminal-related businesses.

ZTE also agreed to sell a 51 percent stake in Changfei Investment to Guangdong All Access for 816 million yuan.

Upon completion of the deals, ZTE will cease to have any stake in Changfei Investment, the statement said.

Last month, ZTE posted a third-quarter net loss of 1.95 billion yuan, compared with a profit of 299.3 million yuan a year earlier. The third-quarter loss was a result of delays in overseas projects, a change in the procurement system for domestic operators and a larger number of low-margin contracts, the company said.