HONG KONG — Shares of Comba Telecom Systems Holdings rose Friday on the Hong Kong bourse, hitting 1.38 Hong Kong dollars, up 1.85% from the previous close.
After the market closed on Thursday, the Chinese telecom equipment maker announced its Jiafu Holdings unit plans to buy a 51% stake in Laos’ state-owned telecom carrier, ETL, for $91.8 million. Investors pushed Comba shares higher on hopes the deal will help the Chinese company boost its revenue.
The Laotian government will hold the remaining 49% in ETL. Through the partnership, Comba Telecom aims to expand into the market in Laos, providing both equipment and services.
Comba Telecom, which owns 49% of Jiafu shares, will contribute $50 million in capital to the deal.
ETL is the only state-owned telecom company operating in Laos. ETL, the No. 3 operator in the country, provides a range of services from fixed-line and mobile phone service to internet and content services.
Source: Nikkei Asian Review