Bangkok--7 Dec--Perfect Connection
3Com to Host Conference Call Today at 6:00 p.m. EST to Discuss Details of the Transaction
3Com Corporation today announced that it has agreed to buy Huawei Technologies' 49 percent stake in Huawei-3Com (H3C) for $882 million, which represents an implied equity value of $1.8 billion. The transaction is subject to customary approval in the People's Republic of China.
The agreement, which, upon closing, gives 3Com full ownership of H3C, was reached through a bid process established under the parties' existing shareholders' agreement that enabled either party to make cash bids to buy the other party's shares in H3C. 3Com initiated the process with a bid on November 15, 2006; 3Com's last bid was accepted by Huawei on November 27, 2006.
"Thanks to the tireless leadership of H3C's Chief Operating Officer, Dr. Zheng Shusheng, and his management team, H3C has proven to be a well-established, stand-alone business with substantial market share in China and strong potential to expand globally, and we are very excited at the prospect of owning 100 percent of the venture," said Edgar Masri, President and CEO of 3Com. "H3C is a strategic asset and we believe that 3Com is well positioned to help it expand its global presence. We believe 3Com, with H3C, can build a powerful, global technology leader.
"Additionally, I want to personally thank Mr. Ren Zhengfei, CEO of Huawei, for his efforts and support, as well as recognize Huawei's contributions to our successful partnership. We look forward to continuing our relationship with Huawei as a key customer of H3C."
Under the existing shareholders' agreement, the parties have agreed that the selling shareholder in the bid process would, under certain circumstances, be subject to a non-compete provision for 18 months after the closing.
3Com will communicate the details of its financing plans for the acquisition at a future date.
Conference Call
Management will host a conference call and webcast at 6 p.m. EST today to discuss details about this transaction. To participate on the call, U.S. and international parties may dial (719) 457-2633. Alternatively, interested parties may listen to the live broadcast of the call over the Internet at 3Com's Investor Relations Web site ( www.3com.com/IR ) in the Earnings webcast section.
About 3Com Corporation
3Com Corporation is a leading provider of secure, converged voice and data networking solutions for enterprises of all sizes. 3Com offers a broad line of innovative products backed by world class sales, service and support, which excel at delivering business value for its customers. Through its TippingPoint division, 3Com is the leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection. 3Com also is the majority owner of Huawei-3Com Co., Ltd. (H-3C), a China-based joint venture formed by 3Com and Huawei in November 2003. H-3C brings innovative and cost-effective product development and manufacturing and a strong footprint in one of the world's most dynamic markets. For further information, please visit www.3com.com , or the press site www.3com.com/pressbox .
More information please contact
Utaiwan Teachajaroenkul Massarina wongjongjaiharn (Aom)
3Com(Thailand)Co., Ltd. Perfect Connection Co., Ltd.
Tel: 0-2231-8154 Tel: 0-2694-6500 # 102
Fax: 0-2231-8158 Fax: 0-2694-6501
[email protected] [email protected]