HONG KONG -- Shares of ZTE rose as much as 4% here Tuesday after the Chinese telecom equipment maker said it would acquire a leading stake in Turkish group Netas Telekomunikasyon.
ZTE's H shares reached an intraday high of 12.68 Hong Kong dollars ($1.63) before closing at HK$12.56, up 3% from the previous session. Investors seem cheered by the deal's relatively low cost and potential for synergies.
The company said its Dutch unit would buy 48.04% of Borsa Istanbul-listed Netas from OEP Turkey Tech. The acquisition, expected to cost between $95.98 million and $101 million, must still be approved by Turkish and Chinese authorities.
ZTE will become Netas' top shareholder and gain access to a customer base including buyers of telecom equipment and IT services.
ZTE's Shenzhen-listed shares climbed more than 1% Tuesday before being undercut by profit taking.