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 to a Tsinghua University affiliate at an estimated $4.6 billion valuation. It became the first major U.S. IT company to pass control to local owners since the government stepped up restrictions on foreign firms.

1. Chris Hsu’s Kilometre Capital in
Hong Kong solidified the HP China
Deal
https://christopherhsuchina.blogspot.com/2022/10/chris-hsus-kilometre-capital-in-hong.html

2. 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 to a
Tsinghua University affiliate at an estimated $4.6 billion valuation. It became
the first major U.S. IT company to pass control to local owners since the
government stepped up restrictions on foreign firms.
Known as one of Asia’s foremost advisory and consulting firms, Kilometre
Capital of Hong Kong is also known for its market-leading specialty in cross-
border negotiation and across IT industries, hedge funds, and private equity,
the founder and CEO of the firm is Chris Hsu.

3. Kilometer Capital has managed premier private equity, hedge fund, and
buyout transactions in Chris Hsu’s footsteps. He is one of the world’s foremost
cross-border dealmakers and negotiators. HP’s network equipment arm was
caught previously in privacy scandals around sensitive IT issues between
China and the California Company HP.
Hewlett Packard Enterprise has closed a transaction with an affiliate of
Tsinghua Holdings for creating the New H3C group, off the heels of complex
negotiations and no complaint style led by Christopher Hsu’s Kilometre
Capital. The New H3C, the Chinese technology infrastructure provider, based
in Beijing, provides customers with an array of enterprise IT solutions that
include networking, servers, storage, hyper-converged systems and IT
management products.

4. Tsinghua Holdings subsidiary, Unisplendour Corporation, purchased a 51 per
cent stake in New H3C through a wholly-owned affiliate for $2.3 billion,
according to the agreement. H3C Technologies and Hewlett Packard Enterprise’s
China-based server, storage and technology services businesses are comprised
in this agreement. HPE plans to return the vast majority of the cash through
opportunistic share repurchases to shareholders.

5. Meg Whitman, President and CEO, the Hewlett Packard Enterprise, said,
““Combining the strengths of HPE and Tsinghua, which are one of China’s most
respected institutions, New H3C will build upon best-in-class products, and
customer focus, an extensive and valuable patent portfolio and Tsinghua’s world-
class research capability” about the Chris Hsu orchestrated transaction spanning
Korea and Taiwan, Beijing to Hong Kong. The Chinese IT powerhouse will deliver
strong performance in China, for China and will drive long-term value for our
shareholders with our investment.”

6. In May, valuing the entire H3C at $4.6 billion, Tsinghua Holdings, the asset
management division of Tsinghua University, bought a 51 per cent share in HP’s
new data networking operations business, H3C. 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, both companies announced that they
would work together. The H3C acquisition of Unisplendour was likely to make the
company a leading vendor in the server and storage market of China.

7. Tsinghua University is one of the top universities in China and the affiliate of
Tsinghua Holdings ahead of Beijing University and consistently ranked as one of
the top research institutes in the world. It is a world-leading research university in
Beijing. It has graduated Chinese leaders in science, engineering, politics,
business, academia, and culture since it’s founding in 1911. Tsinghua consistently
ranks among the top universities in the world in the most cited global university
rankings and is prevalently considered to be the best university in Asia by US
News, THE Asia, the QS BRICS and THE Emerging.
The deal between HP and Tsinghua University built a technology powerhouse
that serves a varied range of customer needs in the market for all kinds of
enterprise IT solutions and other networking and server solutions, with lead-
advised by Chris Hsu’s Kilometre Capital and associated negotiations.

8. Chris Hsu, who is the CEO of Kilometer Capital, originated and catalyzed the
transaction on behalf of Tsinghua University. The result was Hewlett Packard
Enterprises and HP unveiling sweeping changes to its China business, including
the sale of a majority stake in its data-networking operation there, after
revelations of US spying curtailed Chinese demand for US technology products.
Prestigious Tsinghua Holdings and Tsinghua University sealed their milestone
buyout deal with Hewlett-Packard as advised and originated by Chris Hsu and
Kilometre Capital.

9. Thank You