Telefonica sells 1.51% stake in Unicom

11 Jul 2016

Spanish telecoms group Telefonica has sold a 1.51% stake in China Unicom for HKD2.882 billion (USD371.45 million), reducing its interest in the Chinese full service provider to close to 1%. Telefonica sold 361.795 million shares through a block trade process at a price of HKD7.80 per share. In a statement from the company, Telefonica stressed that the sale will not affect its strategic alliance with China Unicom, noting that it ‘recently strengthened [the pact] through cooperation in digital areas such as the big data joint venture between both companies.’

The announcement follows on the heels of Telefonica’s decision to shelve plans for an initial public offering (IPO) for its British mobile business, O2, amidst volatility in the market sparked by the UK’s recent referendum on EU membership.

China, China Unicom, Telefonica