PR Newswire Asia, 1/24/11
China Unicom (NYSE: CHU; 0762.HK; 600050.SH) and global telecom operator Telefónica have agreed to increase their respective stakes in one another by USD 500 mln. China Unicom will acquire an additional 21.83 mln Telefónica shares at EUR 17.16 per share. Once completed, Telefónica will increase its stake in China Unicom to around 9.7%, assuming current share prices, and China Unicom will have a 1.37% stake in Telefónica.
Furthermore, the Board of Directors of Telefónica will propose at the next General Shareholders' Meeting the appointment of a new member of the Board of Directors representing China Unicom.
The agreement was signed by the operators' respective chairmen, Chang Xiaobing and Cesar Alierta.
Editor's note: For more background on this topic please see "China Unicom, Telefonica complete USD 1 Bln Mutual Investment" MD 10/22/09 issue.