Chinese group – New Oriental New Materials announced to buy of 51% equity of TD Tech from Nokia. And it will be a fixed increase of 20 million yuan with a transaction consideration of 2.1216 billion yuan (308 million USD). All in All, Nokia has sold TD Tech ownership.
The buyer also confirmed that TD Tech will become its holding subsidiary. The main business portfolio will include industrial wireless products, terminal products, and Internet of Things products.
Xu Guangbin, controller and chairman of New Oriental New Materials is known for his experience in communication technologies. He is also the founder, chairman, and president of Huayun Data Group.
TD Tech is operated by TD Tech HOLDING LIMITED from Hong Kong. It has very close business cooperation with Huawei, which owns 49% of its equity.
Huawei’s Xu Zhijun, Deng Biao, He Haipeng, Zhang Qi, Yan Lida, and other executives also serve as a director of TD Tech. Actually, it was founded in 2005 as a joint venture of Nokia Siemens and Huawei. It became a wholly-owned subsidiary Chengdu TD Tech (collectively referred to as “TD Tech”) in 2011.
In 2011, a wholly-owned subsidiary, Chengdu TD Tech, began focusing on the R&D and development of communication solutions for industry customers. Currently, it has research centers in Beijing, Shanghai, and Chengdu with over 2000 employees and R&D personnel accounts for 70%.
The company is in the headlines in cooperation with Huawei smartphones. TD Tech launched phones such as M40, P50, and Mate 50. All of these are identical to Huawei smartphones due to their shared patent rights.
Regarding this acquisition, Huawei issued a statement saying that they agree with Nokia’s sale of equity but emphasized that the purchaser must have the same strategic capabilities in order to have the basis for continuing the existing cooperation.
Therefore, Huawei has denied the willingness or possibility to cooperate with New Oriental New Material for the joint venture of TD TECH.
Huawei stated that it is following the situation and has the right to take follow-up measures, including but not limited to exercising the right of first refusal, selling all shares to withdraw, and terminating the relevant technology authorization to TD TECH and its subsidiaries.
So, Nokia finally sold TD Tech and made its share of money out of the deal but we would like to hear an official conclusion of the entire scene.