China Unicom, China Telecom sign final agreement on CDMA asset acquisition
China Unicom Group, Hong Kong-listed China Unicom Ltd and China Telecom Co Ltd have signed a final agreement covering the latter’s acquisition of Unicom’s CDMA business, China Unicom said in a statement filed with Shanghai Stock Exchange.
According to the agreement, the transaction value remains unchanged from the level cited in the framework agreement announced on June 2.
Under the terms of that agreement, China Telecom is to acquire Unicom’s CDMA wireless business for 43.8 bln yuan, while its parent will acquire Unicom’s CDMA wireless network for 66.2 bln yuan.
China Unicom Co Ltd, a wholly-owned subsidiary of China Unicom Group, will sell its CDMA business and related debt to China Telecom. Meanwhile Hong Kong-listed China Unicom and its unit will sell 100 pct in China Unicom Macao to a China Telecom unit.
China Unicom Co Ltd will also sell its 99.5 pct stake in China Unicom’s mobile phone distribution unit China Unicom Vsens Co Ltd to China Telecom.
Unicom New Horizon Mobile Telecom Co Ltd, a wholly-owned subsidiary of China Unicom Group, will sell its CDMA networks to China Telecom Group while China Unicom Group will sell its intellectual property rights to CDMA technology, a 50 pct stake in China Unicom-Brew Co Ltd and a 0.5 pct stake in China Unicom Vsens to China Telecom Group.
Tags: CDMA, China-Telecom, China-Unicom