French equipment vendor Alcatel-Lucent has divested a 85% stake in its subsidiary Alcatel-Lucent Enterprise, a business communications and networking solutions provider with more than 500,000 customers worldwide, to industrial investment company China Huaxin Post & Telecommunication Economy Development Center (China Huaxin) for EUR202 million (USD254.8 million). Alca-Lu will retain a 15% minority stake in the newly formed holding company, which will be incorporated in France. Alca-Lu said that the divestment, which is part of the ‘Shift Plan’ launched in June 2013, will help the vendor to ‘refocus itself as a specialist in IP, Cloud and Ultra-Broadband Access’, while realigning its balance sheet, implementing cost savings of EUR1 billion and generating at least EUR1 billion through selective asset sales by the end of 2015.
China Huaxin’s chairman Yuan Xin said: ‘We are really excited by the acquisition of Alcatel-Lucent Enterprise. Our long-term investment approach will help Alcatel-Lucent Enterprise deliver on its ambition while enabling us to strengthen our strategic position in the enterprise communications arena. Alcatel-Lucent Enterprise has very strong assets and a recognised leadership in many markets across the globe. We are looking forward to leveraging our investment capabilities and experience to bring this business to the next level, both in size and market outreach.’