China Telecom Sells Off Maintenance Subsidiary
China Securities News, 8/03/09
On July 28, Beijing Xinyuan Telecom Maintenance was posted on the Shanghai United Assets and Equity Exchange (SUAEE) for sale by its two shareholders, Beijing Telecom and China Telecom Information Development, a subsidiary of China Telecom (NYSE: CHA; 0728.HK). Beijing Telecom will sell its 20% equity in the company for RMB 7.76 mln, while China Telecom Information Development will sell its 80% equity in the company for RMB 31.06 mln.
Established on February 19, 2004 with registered capital of RMB 5 mln, Beijing Xinyuan Telecom Maintenance primarily provides service to telecom operators and other enterprises, including telecom maintenance, construction, business outsourcing, and property management. In 2008, the company earned core operating revenue and profits of RMB 96.9 mln and RMB 13.99 mln respectively, for a net profit of RMB 10.28 mln. According to an evaluation by China United Assets Appraisal, as of December 31, 2008, the company had a net book value of RMB 37.65, and an estimated net value of RMB 38.82 mln.
Keywords: Beijing Xinyuan Telecom Maintenance corporate restructuring divest Beijing Telecom China Telecom profit revenue telecom China Telecom Information Development Shanghai United Assets and Equity Exchange 0728.HK CHA telecom engineering
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