China Unicom, Telefonica Sign USD 1 bln Mutual Investment Deal
PR Newswire, 9/06/09
China Unicom (NYSE: CHU; 0762.HK; 600050.SH) and Spanish telecom operator Telefonica have entered into a strategic alliance agreement that will see the two operators cooperate in business areas including: joint acquisition of infrastructure and equipment for customers; joint development of wireless service platforms; joint provision of services to multinational enterprises; roaming; R&D; sharing of best practices and technical, operational and management expertise; joint development of a set of strategic initiatives regarding network and technology development, and establishment of an exchange program for the companies' managers.
The companies have also entered into a subscription agreement by which Unicom and Telefonica will acquire the equivalent of USD 1 bln of each other's shares. According to the agreement, the share price for the purchases will be the respective arithmetic average of the closing prices of each party's shares on the Hong Kong and Madrid stock exchanges for the 30 consecutive trading days ended August 28, 2009. The transaction will bring Unicom's stake in Telefonica to approximately 0.88%, and Telefonica's stake in Unicom to approximately 8%, up from a previous 5.38%.
Keywords: overseas China Unicom investment roaming telecom wireless R&D Telefonica 0762.HK 600050.SH CHU M&A Spain foreign operator
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