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Mergers and Acquistions News

Categories: Telecoms

February 3rd 2009, 17:08PM

Zoom Technologies has announced the takeover of Tianjin Communication Broadcasting Group Digital Communication Company (TCB), a Chinese-based group engaged primarily in the manufacture of mobile phones.

Initially, Zoom will own 51 per cent of TCB, by issuing 4,225,219 of its shares.

A further 29 per cent of TCB can then be acquired with the further issue of 2,402,576 shares, leading to Zoom holding an 80 per cent stake in the Chinese firm.

Zoom will also have the further option to acquire five other companies under the ownership of TCB's majority shareholder.

Commenting on the news, Frank Manning, Zoom’s president and chief executive officer, says: "Over the past year we have explored various alternatives to unlock the value of our company.

"We believe that the transaction we announced today benefits not only Zoom's current shareholders and employees, but also all stakeholders of TCB Digital."

Headquartered in Boston, Zoom produces communications products such as DSL, cable and dial-up modems.
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