Shares of TD Tech buyer declined after Huawei refused joint operations

News of Nokia’s TD Tech deal has broken out on the internet but Huawei is not very much into the entire scenario and refused to conduct joint operation of the company, which is also causing a sharp decline for the new buyer.

According to the information, the shares of New East New Materials plunged by the exchange imposed limit after Huawei said it has no interest in the joint operation with the TD Tech buyer.

New East New Materials [SHA: 603110] closed down 10 percent at CNY40.02 (USD5.83) a share today. The stock has climbed 18 percent since the beginning of the year. However, it was volatile in the past few trading days, tumbling 10 percent on April 6 and gaining by the same the day after.

Following the news of the acquisition, Huawei published an official statement announcing “Our company does not have any willingness or possibility to jointly operate TD TECH with New Oriental New Materials”

Chinese media reported that New East New Materials will buy a 51% equity stake in TD Tech. The transaction for equity is about 2.1 billion yuan (around 309 million USD).

Founded in 2005, TD Tech is a joint venture of Huawei and Nokia and it’s operated via TD Tech Holding Limited. Following the launch, Huawei owned 49% of the entire firm, while had 51%. This now led to decision-making power for the new buyer but Huawei’s refusal for joint operations is something that New East New Materials wasn’t expecting.

(source)