China’s three mobile network operators – China Mobile, China Unicom and China Telecom – have made announcements regarding the transfer of their tower assets to China Tower Company. Each of the trio had agreed in October last year to hand over their entire tower portfolios to China Tower in exchange for shares in the new company and, in the case of Unicom and Mobile, a cash consideration. The specific number of shares was to be determined at a later date, although it was agreed that the shareholding structure after the completion of the deal would be as follows: China Mobile 38.0%, China Unicom 28.1%, China Telecom 27.9% and China Reform Corporation 6.0%. The trio have now confirmed the value of the transferred assets, allowing them to finalise the remaining elements of the transaction. The consideration amount for the cellco’s assets were CNY102.74 billion (USD15.55 billion) for China Mobile, CNY54.66 billion for China Unicom and China Telecom, CNY30.13 billion.
China Mobile will be issued 45.151 billion shares in China Tower at an issue price of CNY1 per share, whilst the outstanding value, around CNY57.56 billion will be paid in cash in instalments by the end of December 2017. Similarly, Unicom will receive 33.335 billion shares plus CNY21.32 billion in cash. China Telecom, however, will pay CNY2.97 billion to China Tower in addition to its tower assets in exchange for its 33.097 billion shares.