China Unicom to pay RMB6.43 billion for Netcom

17 Dec 2008

China Unicom will pay RMB6.43 billion (USD939 million) in cash to buy the fixed line assets from its parent company and China Netcom. In a statement China United Telecommunications said that it will acquire China Netcom’s fixed line assets in 21 provinces and cities in southern China, as well as cable assets in northern China. The company will also buy out three subsidiaries of its parent company China Unicom Group. The purchase will be funded by China Unicom’s own capital, according to the company.

China Unicom’s acquisition of China Netcom is part of a wider restructuring of the Chinese telecoms landscape. In July, Unicom sold its CDMA business to China Telecom. China Unicom will be granted a 3G licence based on W-CDMA standards, which could be launched as early as this month.

China, China Netcom, China Unicom