China Mobile to buy Peoples Telephone

10 Oct 2005

One of China’s largest telecoms firms, China Mobile, is to buy Hong Kong’s fourth largest mobile operator China Resources Peoples Telephone (Peoples). According to an announcement from Peoples last week, China Mobile’s listing arm in the SAR has signed a memorandum of understanding (MOU) with its principal shareholders, the China Resources Group, which holds a 48% interest in Peoples and Mr Liang Qixiong, who, with affiliates holds 18.54%. Negotiations between the two sides are underway, although as yet no mandatory conditions for a deal have been agreed. Peoples Telephone claimed a total of 1.21 million mobile subscribers by 30 June 2005, a market share of 15.3%.

China, Hong Kong, China Mobile, China Mobile Hong Kong (CMHK, formerly Peoples)