Rumor: BAT to Participate in China Unicom's Mixed-ownership Reform
The Paper, 11/30/16
Telecom operator China United Network Communications Group (Unicom Group), the ultimate parent of China Unicom (NYSE: CHU; 0762.HK; 600050.SH), has reportedly confirmed its plans to carry out mixed-ownership reforms, and will soon begin the official approval process, according to online media outlet The Paper, citing a source close to the matter. The source also said that Chinese Internet companies Baidu (Nasdaq: BIDU), Tencent (0700.HK), and Alibaba Group (NYSE: BABA) plan to participate in Unicom Group's ownership reforms, but that the nature of their involvement will vary.
Unicom Group has already signed strategic partnership framework agreements with and Baidu, Tencent, and Alibaba (BAT). Unicom Group's partnership with Alibaba focuses on Internet+, big data, basic telecommunications services, mobile Internet, and industry Internet domains. Its partnership with Baidu covers mobile Internet, artificial intelligence, and telecommunications services, while its arrangements with Tencent involve basic telecommunications services and Internet+.
Editor's Note: Addressing this rumor, China Unicom released a statement earlier today saying that, as previously detailed in its public release dated October 10, 2016, parent company China United Network Communications ("Unicom Group") is studying and discussing the mixed-ownership reform implementation plan (the "Reform Implementation Plan"). China Unicom, noting that there has been media coverage stating that the Reform Implementation Plan has been confirmed, said it would like to clarify that, as of today's announcement, neither the Reform Implementation Plan nor the selection of Unicom Group for the first batch of pilot-run on mixed-ownership reform has obtained final approval, which is uncertain while the concrete Reform Implementation Plan is still under discussion. For more information on Unicom Group's mixed-ownership reform, as well as its partnerships with Baidu and Alibaba, please see "China Unicom Considers Proceeding with 'Mixed-ownership Reform'," MD 10/11/16, "China Unicom, Baidu to Ally on Mobile Internet, AI," MD 11/02/16 and "China Unicom, Alibaba Partner on Telecom Services, Mobile Internet," MD 11/15/16 issues.
Keywords: wireless corporate restructuring private investment telecom operator China Unicom telecom Baidu Tencent China United Network Communications Group 0700.HK 0762.HK 600050.SH BIDU CHU Alibaba Group BABA
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