China’s Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Finance have finalised a restructuring plan for the country’s telecom operators. The plan encourages fixed line operator China Telecom to buy China Unicom’s CDMA network. The remainder of China Unicom would take over fixed line operator China Netcom in a HK$439.17 billion deal.
Unicom would offer 1.508 new shares for each existing ordinary share of Netcom and 3.016 American depository shares for each American depository share of Netcom, and China Netcom would be de-listed.
Unicom’s enlarged share capital would be 237.645 shares. The deal’s estimated value is based at a price of HK$18.48 per share.
The transaction is likely to be completed by the fourth quarter of 2008.
