Huawei denies joint operation of TD Tech after Nokia sold 51% stakes

Recently, Nokia decided to sell its half of equity in TD Tech to a Chinese tech group and Huawei has issued a statement on the matter. You should know that China’s New Oriental Advanced Materials has announced the plan for the acquisition of 51% of the equity in TD Tech. This is a Chinese tech firm, of which, Huawei owns 49% equity share.

Below you can check the entire transcript of the statement (translated).

“As a shareholder of TD TECH HOLDING LIMITED (hereinafter referred to as “TD TECH”), for New Oriental Advanced Materials Co., Ltd. (hereinafter referred to as “New Oriental Advanced Materials”) to acquire TD TECH held by Nokia Solutions and Networks Gmbh&Co.KG (hereinafter referred to as “Nokia”) Regarding share matters, our company solemnly declares as follows:

First, the joint operation of TD TECH between our company and Nokia is based on the strategic cooperation between the two parties, the technical strength of both parties, and the global sales and service capabilities.

Second, our company agrees with Nokia’s sale of equity, but the purchaser must have the same strategic capabilities to have the basis for continuing the existing cooperation. Our company does not have any willingness or possibility to jointly operate TD TECH with New Oriental New Materials.

Third, our company is assessing the relevant situation and has the right to take follow-up measures, including but not limited to exercising the right of first refusal, selling all shares and withdrawing, and terminating the relevant technology authorization to TD TECH and its subsidiaries.

Fourth, our company expects shareholders with strategic value to jointly support the continued development of TD TECH.”

Nokia has sealed this deal and made New Oriental Advanced Materials a major stakeholder in TD Tech, to clear doubts, Huawei now shared its viewpoint on the new management as well as cooperation status.

To be mentioned, an official announcement on the cooperation is yet to come. However, all of the processes have already been finalized by all parties. Read more below.