China Unicom to Sell CDMA Network to China Telecom; Merge with China Netcom
June 13, 2008
Chinese mobile operator China Unicom recently confirmed that it will sell its CDMA (Code Division Multiple Access) network assets and accompanying business in cash for 66.2 billion RMB (US$9.5 billion) and 43.8 billion RMB (US $6.3 billion), respectively, to China Telecom, Sohu News reported.
As part of the restructuring plan in the Chinese telecommunications sector, the deal valued at 110 billion RMB (US$15.8 billion; US$1=6.9 RMB) is slated for completion by the end of 2008, according to Sina News.
Meanwhile, China Unicom agreed to acquire China Netcom for HK$ 187 billion (US$23.9 billion; US$1 = HK$7.8), according again to Sina News. Should the merger completes, China Netcom will become the wholly-owned subsidiary of China Unicom, which will hold a majority stake of 40.92% in the new company, with China Netcom and the pubic holding 29.49% and 29.59%, respectively, according to the same source.