The 2.1 billion acquisition may fail. Huawei made a late-night statement: There is no intention or possibility.

According to news on April 10, Huawei issued a statement on the evening of April 9, saying that as a shareholder of TD TECH HOLDING LIMITED, our company has responded to the acquisition of TD TECH shares held by Nokia Solutions and Networks Gmbh&Co.KG by New Oriental New Materials Co., Ltd. There is no intention or possibility to jointly operate TD TECH with New Oriental New Materials.

Huawei’s statement is as follows:

First, our joint venture with Nokia to operate TD TECH is based on the strategic cooperation, technical strength, and global sales and service capabilities of both parties;

Second, our company agrees with Nokia's sale of equity, but the purchaser of the equity must have the same strategic capabilities to have the basis for continuing existing cooperation. Our company has no intention or possibility to jointly operate TD TECH with New Oriental New Materials;

Third, our company is evaluating the relevant situation and has the right to take follow-up measures, including but not limited to exercising the right of first refusal, selling all shares to withdraw, and terminating the relevant technology authorization to TD TECH and its affiliated companies;

Fourth, our company hopes that shareholders with strategic value will jointly support the continued development of TD TECH.

On the afternoon of April 9, Oriental Materials issued an asset acquisition bid announcement. The company plans to issue shares to specific targets to raise a total of no more than 2 billion yuan, all of which will be invested in acquiring 51% of TD TECH HOLDING LIMITED's equity. The transaction target is Nokia Solutions and Networks GmbH&Co.KG.

Public information shows that TD TECH was registered in Hong Kong, China and was established in 2003. Nokia and Huawei hold 51% and 49% of the shares respectively. Among the directors of TD TECH, Xu Zhijun, He Haipeng, Yan Lida and others are all senior executives of Huawei. Xu Zhijun is also one of Huawei's rotating chairman. At the same time, TD TECH is a holding company, with its wholly-owned subsidiary TD Tech Co., Ltd. and its wholly-owned subsidiary Chengdu TD Tech Co., Ltd. as its main business entities.

Oriental Materials said that after the investment project is implemented, TD TECH will become a holding subsidiary of Oriental Materials, and the listed company's main business will add industry wireless products, terminal products and Internet of Things products.

According to China Fund News, Xu Guangbin, the actual controller and chairman of Oriental Materials, has a rich background in the communications industry. Not only has he served as the chairman of Xiamen Lanmang Technology Co., Ltd., the vice president and head of cloud computing business of Century Internet, and the vice president of sales of GDS, he is currently the founder, chairman and president of Huayun Data Holdings Group.

It is understood that the Shanghai Stock Exchange issued a regulatory work letter to Oriental Materials on April 9, proposing regulatory requirements for the company's non-public issuance matters. Previously, Oriental Materials disclosed its plan to issue A shares to specific targets in 2023. It plans to issue shares to specific targets to raise a total of no more than 2 billion yuan (including the original amount), all of which will be invested in the "acquisition of 51% equity of TD TECH" project. The counterparty to the acquisition is Nokia.

After the acquisition is completed, TD TECH will become a holding subsidiary of the listed company. Oriental Materials also reminded in the plan that if the cooperative relationship between TD TECH and Huawei changes in the future, it may have an adverse impact on the development of TD TECH's business.