China Telecom Solicits Outside Investment for Subsidiaries
Tencent Tech, 5/13/14
At a recent conference held by China Telecom (NYSE: CHA; 0728.HK) in Beijing, Li Anmin, head of China Telecom's innovation business unit, revealed that the company will actively seek private investment in China Telecom subsidiaries involved in emerging telecommunication sectors in an effort to promote mixed-ownership reform. The company will give priority to its social networking, incubation, internet application, and government and enterprise related subsidiaries.
China Telecom announced at the conference that the company's Animation Center and Mobile App Store subsidiaries will be spun off as independent companies, namely "Tianyi Aidongman Culture and Media" and "Chengdu E-Surfing Space Technology," respectively. Of China Telecom's 8 vertical service bases, 6 have now been spun-off into independent companies. In addition to the two aforementioned vertical service bases, the company's Video Center, Gaming Base, and Enterprise Communications Portal (ECB) base have all attracted outside investment. China Telecom's E-Surfing Reading Culture Communication subsidiary began soliciting strategic investment in Q1 2014.
In 2014, China Telecom will select 2-3 of its subsidiaries to enter into financing agreements with third-party investment enterprises, including the company's Best Tone Information Service advertising services subsidiary.
Keywords: Li Anmin China Telecom financing investment telecom Best Tone 0728.HK CHA spin-off
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