China GrenTech, a provider of wireless coverage product and services in China, has divested two wholly owned subsidiaries: Quanzhou Lake Communication and Quanzhou Lake Microwave.
The principle business of Lake Communication has been to supply RF modules to the company’s wholly owned subsidiary, Shenzhen GrenTech Company, for manufacturing network coverage equipment, and the principle business of Lake Microwave has been to supply RF modules to companies other than Shenzhen GrenTech.
The company sold Lake Communication to Haifan Zhuang, director and chief technology officer of China GrenTech, and sold Lake Microwave to Haifan Zhuang and Lake (HK) Technology Company.
As consideration for the acquisition, Shenzhen GrenTech has released from its account payable obligations in the aggregate amount of RMB106.3m due to the two subsidiaries and the buyers are expected to acquire the two subsidiaries subject to their existing outstanding debt obligations. The terms of the transaction were negotiated on an arms’ length basis and approved by the company’s independent directors.
Yingjie Gao, chairman of China GrenTech, said: As we intend to continue to procure modules from Lake Communication and Lake Microwave in the short term after the disposal, we anticipate that there will be no impact on our operations or supply. Moving forward, we will further leverage our leading RF technology and production scale in Shenzhen to continue to manufacture our own RF modules for network coverage.