HP sells Chinese stake

20120610-stir-fry-grill-wok-21-thumb-625xauto-248338News from the wires this morning is that the maker of expensive printer ink, HP, has sold off some Chinese stake.

We knew that the company was desperate to make money again, but we did not really expect a push into the takeaway market. Chinese stake is ambitious, normally people start with sweet and sour pork and move up.

Apparently HP will sell 51 percent stake in its China-based data-networking business to China’s Tsinghua Unigroup for at least $2.3 billion. The big idea is that it will forming a partnership designed to create a Chinese technology powerhouse.

State-backed Tsinghua Holdings’ subsidiary Unisplendour will acquire 51 percent of HP’s H3C Technologies for at least $2.3 billion.

HP said it will form a partnership with Tsinghua Holdings, affiliated with China’s elite Tsinghua University, to create a group in China to house H3C’s networking operation alongside its China-based server, data-storage and technology-services businesses.

HP said in its statement it valued its H3C business at $4.5 billion. The company had previously valued the unit at $5.5 billion, people with knowledge of the matter told Reuters last month.

HP’s move is being seen as a way to get a foot in the door in China. Western tech companies have struggled for customers in China after Edward Snowden revealed that US spooks were using US firms to spy on China. Many of these Western companies are now seeking local partners or selling off assets altogether to Chinese buyers.