HAMILTON, Bermuda, Sept 6 (Reuters) - Global Crossing
Ltd.,, which is building a underwater communications network,
on Monday said it acquired a 49 percent stake of S.B. Submarine
Systems Co. Ltd. (SBSS) from Great Eastern Telecommunications.
The purchase is part of Global Crossing's $888.2 million
purchase earlier this year of Global Marine Systems Ltd., the
undersea cable arm of Britain's Cable and Wireless Plc. Great
Eastern is a joint venture between Cable & Wireless and Hong
Kong Telecom, 54 percent owned by Cable & Wireless.
A Global Maine Systems representative said no funds or
shares were involved in the acquisition, which was awaiting
approval from China Telecom, which owns the controlling stake
of SBSS.
SBSS had been responsible managing and installing submarine
cable systems. China Telecom is owned by the central government
of China and is that country's principal provider of
telecommunications services.
China Telecom and Great Eastern formed SBSS, which has an
annual revenue of more than $50 million, in 1995, Global
Crossing said.
"This agreement ensures that SBSS will get the continued
support in training and technology transfer it needs to keep up
with the dramatic growth in Asia's telecommunications
industry," William Carter, president of Global Crossing's
development and chairman of Global Marine Systems Ltd., said in
a statement.
Under the agreement, Global Marine Systems Ltd., a wholly
owned subsidiary of Global Crossing, will continue to provide
training and technology transfer to SBSS.
REUTERS
Rtr 13:06 09-06-99
Copyright 1999, Reuters News Service |
