Baidu, Alibaba, Tencent Among 10 Firms to Take 35% Stake in China Unicom for $11.7bn

17 August 2017
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Baidu, Alibaba, Tencent Among 10 Firms to Take 35% Stake in China Unicom for $11.7bn Image Credit: China Unicom

China Unicom, the country's third-largest telecommunications player, has agreed to raise 78 billion yuan ($11.7bn) in private capital from a number of China’s leading tech companies including the BAT trio, Baidu, Alibaba, and Tencent, as part of a mixed-ownership reform plan proposed by the Chinese government. 

China Unicom is the first major state-owned enterprise to announce the mixed-ownership reform plan. 

The new investors will jointly hold 35 percent of shares in the company’s Shanghai-listed parent unit China Unicom group, reducing the stake held by Unicom in the unit to 37 percent from 63 percent.

The investors will subscribe to about 9 billion shares in the company and purchase 1.9 billion new shares at a price of 6.83 yuan per share. Tencent will own a 5.2% stake in China Unicom, followed by Baidu with 3.3%, JD.com with 2.4%, and Alibaba with 2%. China Life Insurance will be the largest investor, with a 10.2% stake.

The Hong Kong-listed mobile operator said the funds would be used to help pay for the development of a next-generation cellular and data network, as it expects to further optimize its corporate governance structure.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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