Global Crossing Buys 49 Percent of Chinese Cable Company
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Global Crossing has acquired a 49 per cent share of S.B. Submarine Systems Company (SBSS) from Great Eastern Telecommunications (GET), a joint venture of Cable & Wireless and Hong Kong Telecom.
Global Crossing, which is building the world's most advanced global IP-based fibre optic network, reached agreement with China Telecommunications, the majority partner in SBSS to acquire the stake.
Established in 1995, SBSS provides installation and maintenance of submarine cable systems, operates two cableships and has berths and a cable depot in Shanghai. It has annual revenue over $50 million.
"We are delighted that China Telecom has agreed to continue this relationship and allow Global Crossing to acquire the GET share holding in SBSS," said William B. Carter, president of Global Crossing Development Company and chairman of Global Marine Systems.
Despite this divestment by Cable & Wireless, the UK remains the sixth largest global investor in China, with investments of $13 billion by the end of 1998. British companies are involved in more than 2000 joint ventures with China.