Alcatel-Lucent receives $362 mn offer for Enterprise unit from China Huaxin

French telecommunications equipment company Alcatel-Lucent SA has received a €268-million ($362 million) binding offer for its Enterprise unit from state-backed Chinese technology investment company China Huaxin.

The Paris-based company said that it will enter into exclusive discussions with, China Huaxin for the sale of Alcatel-Lucent Enterprise.

The proposed transaction values Alcatel-Lucent Enterprise at €268 million on an enterprise value basis and at a currently estimated value of €237 million for the entire equity of the unit that deals with corporate clients.

Alcatel-Lucent said that it will retain a minority stake of 15 per cent in Alcatel-Lucent Enterprise.

The proposed transaction will soon be submitted to the workers councils of Alcatel-Lucent Enterprise for the required information and consultation procedures and expects to sign a definitive agreement during the second quarter of 2014.

The proposed sale comes two months after Alcatel-Lucent it is in talks to sell its LGS Innovations division to US private equity firm Madison Dearborn Partners for around $200 million.

Under chief executive Michel Combes, Alcatel-Lucent is trying to turn around the company which has lost money nearly every year since its creation in 2006. Alcatel-Lucent was formed through the $13.4 billion merger of Altacel SA with US-based Lucent Technologies.

Combes said that he has sold assets worth €350 million under his Shift plan and said that he was on track to divest €1 billion worth of assets by the end of 2015.

Combes' Shift plan unveiled last June involves asset sales, 10,000 job cuts and cost savings of  €250 million to €300 million.