Huawei is set to sell off a controlling stake in its subsea telecoms cabling business, Huawei Marine Systems, according to a bourse filing…
Huawei is set to sell off a controlling stake in its subsea telecoms cabling business, Huawei Marine Systems, according to a bourse filing.
Huawei will sell a 51 per cent controlling stake in the company to Hengtong Optic Electric, a network equipment manufacturer based in Jiangsu province, China.
The move comes as Huawei finds itself the subject of a US banning order, which has prevented the Chinese tech giant from doing business with US companies. The decision to sell off the stake in Huawei Marine Systems may signal a desire to refocus its attentions on its core business areas.
Huawei Marine has built over 90 subsea cables, stretching over 50,000km across the globe.
Huawei Marine Systems recently completed work on the South Atlantic Inter Link (SAIL) system, which connects Africa and South America, with landing stations in Cameroon and Brazil.
Huawei and Hengtong Optic Electric have yet to comment on the deal, which took effect on the 31st May 2019.