China Netcom has entered into definitive agreement with Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Limited under which China Netcom has agreed to sell 100% of the equity interest in Asia Netcom for US$168.84 million.
Zhang Chunjiang, Chairman of China Netcom said, "After the disposal of Asia Netcom, China Netcom will maintain its business relationship with Asia Netcom for its international operations. This business relationship will include the purchase of capacity by China Netcom from Asia Netcom. Both parties will cooperate in good faith to explore potential future business partnerships and opportunities."
China Netcom's Board of Directors has approved this transaction. The completion of the transaction is subject to relevant governmental approvals and other customary closing conditions.
Asia Netcom, headquartered in Hong Kong, provides submarine cable capacity, international data and voice services to multinational corporation and telecom carrier customers mainly in the Pan Asia-Pacific region.