China Unicom (Hong Kong) Limited has announced plans to invest CNY6.43 billion to acquire the fixed-line business in Tianjin and 21 southern Chinese provinces from its major shareholders China Unicom Group and China Netcom Group.
It says in a report that the subjects of this acquisition mainly include the telecommunications business in the 21 southern Chinese provinces, the local phone business in Tianjin and the relevant assets owned by China Unicom Group and China Netcom Group; the first level route transmission assets in North China owned by China Netcom Group; and the 100% stakes in Unicom Xingye Science & Technology Trade Co., China Information Technology Designing & Consulting Institute and Unicom New Guoxin Communications Ltd. owned by China Unicom Group. The price for the acquisition is CNY6.43 billion and China Unicom will pay in cash.
At the same time, China Unicom will rent the fixed-line assets in the 21 southern Chinese provinces from China Unicom Group.
Before the restructuring of China's telecommunications industry, China Netcom's branches in the 21 southern provinces were not included in its listed company, which has been recently delisted from the market. Therefore, the assets of China Unicom (Hong Kong) Limited does not cover the assets of China Netcom's branches in the 21 southern provinces. However, this new move shows China Unicom's intention to include the fixed-line business in South China in its listed company.