Datang Telecom announced on the evening of December 12 that the company transferred 51% of the 97.4785% equity interest in Chengdu Datang Cable Co., Ltd. to FiberHome Communications. The transfer price was tentatively set at 74.715 million yuan.

Datang Telecom’s announcement shows that Chengdu Cable’s registered capital is RMB 116 million, and it operates raw materials and accessories for optical fibers, optical cables, cables, cable products, and cable production equipment. Chengdu cable net profit of 2.82 million yuan in 2010, January-September 2011 net profit of -344 million.

The announcement said that after the completion of the equity transfer, Datang Telecom will hold 46.4785% of the Chengdu cable, becoming its second largest shareholder. The equity transfer will help improve the company's industrial structure, realize resource integration and industry focus, and revitalize assets, and at the same time enable Chengdu Cable to better develop in the future.