State-owned enterprise first to purchase Nasdaq-listed company

Shanghai-listed telecommunications equipment provider Eastern Communications (Eastcom) has acquired Nasdaq-listed Interwave Communications, marking the first time a mainland state-owned enterprise has acquired a Nasdaq-listed company.

Eastcom acquired six million shares of Interwave common stock, or a 10.3 per cent stake, making it the largest shareholder of Interwave, the Shanghai-listed company announced in a stock exchange statement.

Canadian telecommunications giant Nortel was previously the largest shareholder in Interwave with a 15 per cent stake. But Eastcom acquired four million shares from Nortel for US$2.58 million.

Eastcom acquired another two million shares for US$1.77 million.

The two companies already have a strategic alliance agreement, with Interwave agreeing earlier this year to purchase US$25 million worth of equipment from Eastcom next year.

'The combination of Interwave's products and technologies, and our strong market presence in China's cellular market space are complementary qualities that will accelerate our combined success in the market,' Eastcom chief executive Zhou Minghai said.