Chinasoft brings on Huawei as shareholder through share exchange

Chinasoft International (SEHK: 354) said it has signed a share subscription and purchase agreement with Huawei Technologies Co., Ltd.

Huawei has conditionally agreed to subscribe, while Chinasoft has conditionally agreed to issue 85,109,515 shares for HK USD 238,306,641 in accordance to the subscription agreement.

Chinasoft has conditionally agreed to acquire, while Huawei has conditionally agree to sell 40 percent of Chinasoft International Technology Services Co., Ltd.

After the completion of this transaction, Chinasoft will have 100 percent control of the original JV, and Huawei will hold 3.97 percent of Chinasoft shares. Additionally, Huawei has agreed to be a long term strategic investor of the Group and will not divest any issued shares within two years of the completion of the subscription. After the completion of the transaction with Huawei, Chinasoft will become the first Hong Kong listed company to have Huawei as a shareholder.

Huawei is a leading global information and communications technology (ICT) solutions provider.

Incorporated in 2000, ChinaSoft International Limited is a listed company in the main board of Hong Kong Stock Exchange (HKSE: 354).