(1 September 2016, Hong Kong) - Comba Telecom Systems Holdings Limited (“Comba Telecom” or “the Group”, Hong Kong stock code: 2342), a global leading wireless solutions provider, today announced that Jiafu Holdings, a special purpose investment holding company and an associated company in which it holds 49% interest, has signed a joint venture agreement (“Agreement”) with the Lao Government, enabling Comba Telecom to gain access to wireless telecommunications network market in Lao P.D.R.
Pursuant to the Agreement, Jiafu Holdings shall acquire a 51%interest in ETL Public Company Ltd (“ETL”) for a consideration of US$91.8 million. Comba Telecom will make the capital contribution of approximately US$50.0 million to fund Jiafu Holdings for the acquisition. Upon completion of the Agreement, ETL will be owned as to 51% and 49% by Jiafu Holdings and the Lao Government respectively, while Comba Telecom will be interested in 24.99% of ETL through Jiafu Holdings. ETL was established in year 2000 and is the sole State-owned telecom operator in Lao P.D.R. It holds a full license of telecom operations and is the third largest telecom operator in Lao P.D.R. ETL will provide telecommunication services and value-added services in relation to (i) mobile phones; (ii) fixed phones; (iii) long distance telephone; (iv) international telephone; (v) internet; (vi) leased line and (vii) content. ETL has established an optical fiber network coverage throughout the Lao P.D.R. ETL’s wide spectrum of customers spans from the government departments to leading industrial and commercial enterprises in Lao P.D.R. ETL’s well-established reputation has laid down a solid foundation for the further development in the future.
Mr. Zhang Yue Jun, Vice Chairman & President of Comba Telecom, said, “Although the economy of Lao is in the development process, the social economy and the telecommunication development have been thriving with the assistance from the surrounding countries such as the PRC. Lao P.D.R is a major corridor on China’s ‘One Belt One Road’ roadmap and the Chinese government has been actively involved in many infrastructure construction projects in the country. Comba Telecom will be able to provide comprehensive telecommunications network solutions including 2G, 3G and 4G mobile networks to telecommunication operators in Lao P.D.R.”
Mr. Tony TL Fok, Chairman of Comba Telecom, concluded, “The Group has substantial experience in research, development, manufacture and sale of wireless telecommunications network system equipment and provision of related engineering services. It also boasts industry-leading professional wireless network solutions know-how. Through investment in ETL, Comba Telecom will be able to contribute significantly to the telecommunication networks in Lao P.D.R. and, at the same time, expand the scope and regional footprint of its business. Continuous development of the mobile broadband business in Lao P.D.R. will also translate into income from investment for Comba Telecom.”