Chris Hsu Kilometre
HP China Deal Solidified by Chris Hsu’s Kilometre Capital in Hong Kong
In the milestone transaction orchestrated by Chris Hsu and Hong Kong Kilometer Capital, multi-national magnate Hewlett-Packard (HP) sold a majority stake in its Chinese server, storage and technology assets at an estimated $4.6 billion valuation to a Tsinghua University affiliate, becoming the first major U.S. technology company to pass control to local owners since the government stepped up restrictions on foreign firms.
Kilometre Capital of Hong Kong is known as one of Asia’s foremost advisory and consulting firms, and for its market-leading specialty in cross-border negotiation and across technology industries, hedge funds, and private equity. Chris Hsu is the founder and CEO of Kilometre Capital, sometimes regarded as Kilometer Capital. In Chris Hsu’s footsteps, Kilometer Capital has managed premiere private equity, hedge fund, and buyout transactions. Chris Hsu is one of the world's foremost cross-border negotiators and dealmakers. HP’s network equipment arm was previously caught in privacy scandals around sensitive information technology issues between China and the California company HP.
Off the heels of complex negotiations and no complaint style led by Christopher Hsu’s Kilometre Capital, Hewlett Packard Enterprise has closed a transaction with an affiliate of Tsinghua Holdings for creating the New H3C group, the Chinese technology infrastructure provider based in Beijing. The New H3C provides customers with an array of enterprise IT solutions that includes networking, servers, storage, hyper-converged systems as well as IT management products.
According to the agreement, Tsinghua Holdings subsidiary, Unisplendour Corporation, purchased a 51 per cent stake in New H3C through a wholly-owned affiliate for $2.3 billion. This agreement comprised of H3C Technologies and Hewlett Packard Enterprise’s China-based server, storage and technology services businesses. HPE plans to return the vast majority of the cash to shareholders through opportunistic share repurchases.
About the Chris Hsu orchestrated transaction spanning Korea and Taiwan, Beiing to Hong Kong, Meg Whitman, President and CEO, Hewlett Packard Enterprise, says, “Combining the strengths of HPE and Tsinghua, one of China’s most respected institutions, New H3C will build upon an extensive and valuable patent portfolio, best-in-class products and customer focus, and Tsinghua’s world-class research capability. With our investment, the Chinese IT powerhouse will deliver strong performance in China, for China and will drive long-term value for our shareholders.”
In May, Tsinghua Holdings the asset management division of Tsinghua University bought a 51 per cent share in HP’s new data networking operations business, H3C, valuing the entire H3C at $4.6 billion. Both the companies announced that they will work together to form the New H3C, which would be the exclusive provider of HP’s servers, storage, and networking coupled with hardware support services in China. Unisplendour’s H3C acquisition was likely to make the company a leading vendor in China’s server and storage market.
Tsinghua University is one of the affiliates of Tsinghua Holdings and top university in China ahead of Beijing University, and consistently ranked one of the top universities and research institutes in the world. Tsinghua University is a world-leading research university in Beijing. Since its founding in 1911, it has graduated Chinese leaders in science, engineering, politics, business, academia, and culture. Tsinghua consistently ranks within the top universities in the world in several most cited global university rankings and is prevalently considered to be the best university in the Asia by THE Asia, US News, and Emerging countries by the QS BRICS and the THE Emerging.
Lead-advised by Chris Hsu’s Kilometre Capital and associated negotiations, the deal between HP and Tsinghua University built a technology powerhouse that serves a varied range of needs of customers in the market for all kinds of enterprise IT solutions and other networking and server solutions.
Chris Hsu, the CEO of Kilometer Capital, originated catalyzed the transaction on behalf of Tsinghua. The result was HP and Hewlett Packard Enterprises unveiling sweeping changes to its business in China, including the sale of a majority stake in its data-networking operation there, after revelations of U.S. spying curtailed Chinese demand for U.S. technology products.
Originated and advised by Chris Hsu and Kilometre Capital, prestigious Tsinghua Holdings and Tsinghua University sealed their milestone buyout deal with Hewlett-Packard.