Business
Italy's Prysmian completes divestment from China's YOFC to help fund Channell deal
Italy's Prysmian completes divestment from China's YOFC to help fund Channell deal
About this update from Prysmian S.p.a.
Italy's Prysmian MIL:PRY has completed its divestment from Hong Kong-listed Yangtze Optical Fibre and Cable SSE:601869 with the sale of its remaining 5% stake, the group said in a statement on Tuesday. The cable maker began divesting what had been a 23.7% stake in YOFC in April. It is using the proceeds to help support its $1.15 billion acquisition of U.S. connectivity device manufacturer Channell Commercial Corp. In its latest placement, the cable maker, through its subsidiary Draka Comteq, sold around 37.6 million H shares of YOFC for HK$47.10 ($6.05) each, for a gross consideration of HK$1.8 billion. H shares refer to stock in mainland China's companies listed on the Hong Kong Stock Exchange. Prysmian has raised a total of around 550 million euros ($650 million) through the YOFC share disposal, which it completed in five tranches, according to a Reuters calculation. The firm continues to operate in China through its local entity. ($1 = 7.7819 Hong Kong dollars) ($1 = 0.8466 euros)