Hewlett Packard Enterprise (HPE) has taken another major step in scaling back its presence in China, announcing the sale of a 10% stake in H3C Technologies for $714 million. The deal places an implied $7.14 billion valuation on H3C, underscoring the continued strength of the Chinese enterprise-IT provider amid a shifting global tech landscape.
The stake is being acquired by a consortium of Chinese investors, including Unisplendour International Technology (UNIS) and several major state-linked financial asset managers. Their participation reflects ongoing domestic interest in consolidating China’s enterprise hardware and network-infrastructure capabilities.
A key component of the agreement is UNIS’s decision to waive its right of first offer, enabling HPE to move ahead with its multilateral sale strategy. After this transaction closes, HPE will retain 9% of H3C, but the company has already signaled its intention to fully divest its remaining stake over time through put options or additional sale agreements.
The transaction remains subject to Chinese regulatory approvals, with a long-stop deadline set roughly six months from November 17, 2025.
Why This Matters for HPE and the Tech Industry
Strategic refocus: The sale supports HPE’s ongoing plan to streamline its portfolio and concentrate investment on high-growth areas such as AI infrastructure, hybrid cloud, and high-performance computing. Reduced China exposure: As geopolitical pressures rise, HPE continues to unwind its long-standing joint venture, reducing operational and regulatory risks tied to the Chinese market. Strong valuation benchmark: The implied $7.1 billion H3C valuation provides investors with a clear indicator of the asset’s worth and sets expectations for HPE’s eventual full exit.
This latest divestiture highlights HPE’s broader transformation strategy as it shifts capital toward global growth initiatives while gradually concluding its decades-long participation in China’s enterprise IT sector.
