Hong Kong: Hewlett-Packard Co will sell a controlling 51 percent stake in its China-based data-networking business to China`s Tsinghua Unigroup for at least $2.3 billion, forming a partnership designed to create a Chinese technology powerhouse.
State-backed Tsinghua Holdings` subsidiary Unisplendour Corp Ltd will acquire 51 percent of HP`s H3C Technologies for at least $2.3 billion, Unisplendour said in a statement to the Shenzhen stock exchange late on Thursday.
The U.S. company also said in a statement on Thursday it will form a partnership with Tsinghua Holdings, affiliated with China`s elite Tsinghua University, to create a group in China to house H3C`s networking operation alongside its China-based server, data-storage and technology-services businesses.
HP said in its statement it valued its H3C business at $4.5 billion. The company had previously valued the unit at $5.5 billion, people with knowledge of the matter told Reuters last month.
Western tech companies have struggled for customers in China after former U.S. National Security Agency contractor Edward Snowden`s revelations of cyberspying programmes involving U.S. firms. Many of these Western companies are now seeking local partners or selling off assets altogether to Chinese buyers.