China Netcom to sell Asia Netcom

5 Jun 2006

China Netcom Group Corporation (Hong Kong) Limited has entered into a definitive agreement with two London-based investment companies, Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Limited, to sell 100% of Asia Netcom for USD168.84 million. China Netcom’s Board of Directors has already approved the transaction, but completion is subject to relevant governmental approvals.

Headquartered in Hong Kong, Asia Netcom provides submarine cable capacity, international data and voice services to multinationals and telecom carrier customers in the pan Asia-Pacific region. According to the press release, Mr Zhang Chunjiang, Chairman of China Netcom said: ‘After the disposal of Asia Netcom, China Netcom will maintain its business relationship with Asia Netcom for its international operations. This business relationship will include the purchase of capacity by China Netcom from Asia Netcom. Both parties will cooperate in good faith to explore potential future business partnerships and opportunities.’

China, China Netcom