Telefonica to up Unicom stake to 9.7%, Chinese to get seat on Spanish board

24 Jan 2011

China Unicom will gain a seat on the board of Spanish telecoms group Telefonica, in a move which deepens an existing strategic co-operation agreement through a further mutual purchase of each other’s shares for USD500 million each. The share purchases will take Telefonica’s stake in China Unicom to 9.7% and China Unicom’s holding in the Spanish group to 1.37%. China Unicom, which will purchase 21.8 million shares of Telefonica in the coming days at an agreed price of EUR17.16 (USD14.6) per share, will get a seat on Telefonica’s board. Telefonica will buy USD500 million worth of China Unicom shares from third parties over a nine-month period.

China, Spain, China Unicom, Telefonica