China Unicom eyes telecom assets from parent
China Unicom<600050><762>, the second largest mobile telecom carrier in China, announced its proposed acquisition of certain assets and business related to its core business from its parent China United Network Communications Group Co Ltd and China Network Communications Group Corp.
China Unicom, after the recent industry restructuring, plans to acquire telecommunication assets from its parent for RMB 6.43 billion in a bid to further tap into the southern China market. It will lease the telecom networks from its parent in south China, sources reported.
China Unicom said in a statement filed with the Hong Kong Stock Exchange (HKEx) that the assets include telecom businesses in 21 Chinese provinces and regions, as well as the local access telephone business and other assets in the north China’s Tianjin Municipality.
China Unicom will enter “the densely populated south China market” and enhance its fixed-line operations through the acquisition, it said.
In October, China Unicom bought China Netcom<906>, the nation’s second-largest fixed-line telephone company, as part of the government’s measures to let carriers offer both wireless and traditional phone services.
Tags: China-Netcom, China-Unicom, telecom