China’s O-Net Technologies to finalise acquisition of ITF, CEO says

O-Net Technologies Group said problems hovering over its takeover of Montreal-based tech company ITF Technologies have almost been resolved and they are looking forward to sealing the acquisition in the first half of this year.

“We have negotiated and talked with Canada for two years after the issue occurred in 2014,” said Austin Na Qinglin, chief executive and chairman of O-Net Technologies.

“Now the problems have been resolved and hopefully we will seal the deal very soon in the first half of this year,” Na said.

Hong Kong-listed O-Net, a company which mainly engages in the design and sale of optical networking components, was at the centre of a controversy in 2015 when Ottawa halted the takeover of ITF amid concerns the deal could give China access to advanced military laser technology.

Canadian national security agencies wrote in a 2015 review that the deal might diminish “Canadian and allied military advantages”, according to The Globe and Mail.

The main problem, according to Na, was that O-Net was perceived as being a Chinese state-owned company as 27 per cent of the company’s shares are held by a Hong Kong company that is a subsidiary of China Electronics Corp Holdings, a Chinese state-owned enterprise in the electronics information industry.

Na said the concerns over O-Net’s autonomy have been put to rest after discussions with Canadian authorities.