Beijing Teamsun Technology says to buy 68.4% stake in ASL

May 12, 2009 (China Knowledge) - Beijing Teamsun Technology Co Ltd<600410>, an integrated IT service provider in China, announced on Friday in a statement that it intends to purchase a 68.4% stake in Automated Systems Holdings Ltd (ASL)<0771> for HK$262 million.

The company's Hong Kong subsidiary will buy the 68.4% stake, or 203.43 million shares, at HK$1.29 per share in cash from ASL's controlling shareholder CSC Computer Sciences International Inc and its wholly-owned subsidiaries.

The deal is still subject to approval from the general meeting of shareholders of Teamsun Technology and from regulators.

The transaction will not only help Teamsun Technology to upgrade its software and IT services, which account for a large part of ASL's business, it will also help the Beijing-based company expand its business in the overseas market, especially the Southeast Asian market.

Shanghai-listed Teamsun Technology, which supplies computer system integration solutions to the telecom, financial, and postal industries, reported revenue of RMB 2.94 billion from its main business last year.

ASL realized a net profit of RMB 40 million from its main business in 2008.