Unicom agrees to buy back stock from SK Telecom

6 Nov 2009

China Unicom shareholders have agreed buy back stakes held by South Korean telecom operator SK Telecom at a total transaction value of HKD9.99 billion (USD1.29 billion). China Unicom will purchase 899.75 million shares held by SK Telecom for HKD11.11 per share, equal to 3.8% of its total capital stock.

SK Telecom purchased the China Unicom shares in August 2007 for approximately HKD7.75 billion. The purchase made SK Telecom the second-largest shareholder in the company at the time, with a 6.6% stake. SK Telecom’s stake was diluted as a result of the merger of China Netcom and China Unicom in October 2008, and increased investment by Spanish telecom giant Telefonica.

China, China Unicom, SK Telecom (SKT)