Huawei is selling its majority stake in the undersea telecoms cable company, Huawei Marine Systems, marking the Chinese group’s first big asset sale since the US began ramping up pressure on the company amid accusations that it is a national security risk, reported the Financial Times.
In a filing to the Shanghai Stock Exchange on Monday, Hengtong Optic-Electric, a Chinese manufacturer of communications cables, said it had agreed to buy Huawei’s 51% stake in Huawei Marine Systems, which wholly owns Huawei Marine Networks.
The filing did not disclose the price, but Hengtong said it would pay for the stake in cash and shares. Huawei Marine, which was established in 2009, has undertaken 90 projects globally and laid 50,361km of cable, according to its website.
The sale of the stake comes two weeks after the US placed Huawei on an export blacklist, threatening to cripple the company by cutting it off from suppliers. While the US has been focusing on Huawei’s 5G plans, Huawei Marine has grown to become an important player in the world’s undersea cable market, with the infrastructure that forms the backbone of the global internet by carrying data between countries.