Telecom & Wireless

China Telecom To Purchase Parent's Network Assets?

Rumors are spreading throughout the industry that China Telecom Stock Co., Ltd is seeking to issue new shares to collect a total financing of $3 billion in preparation for the future acquisition of the telecommunication network belonging to its parent company–China Telecommunications Group.

Last October, China Telecom Stock Co., Ltd purchased 6 provincial/municipal networks from its parent company for CNY 4.6 billion in cash, increasing its debt rate 13% to 37%. Despite this, the company is now said to be coveting another 11 of China Telecommunications Group's networks.

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