Netease Tech, 10/20/09
Chinese telecommunications provider China Satcom Guomai Communications (600640.SH) has announced that it has been ordered to begin preparations for major asset restructuring by China Telecom (NYSE: CHA; 0728.HK) parent company China Telecommunications Corporation.
China Satcom Guomai is China's only Integrated Digital Enhanced Network (iDEN) operator. In its statement, the company said that the asset restructuring is part of China Telecom's plans as per the telecom industry restructuring. Because of the large degree of uncertainty involved in the restructuring, the company has filed for its stock to discontinue trading beginning October 20, 2009.
The announcement further stated that "China Satcom Guomai will, within 30 days of the publication of this announcement, and in accordance with relevant regulations, convene a meeting of its board of directors to prepare a major asset restructuring plan. Trading of the company's stocks will restart following the publication of this plan. If the plan is not published within this time frame, trading will begin again on November 19, 2009, and the company will for the three months following that date refrain from asset restructuring preparation."
For more background on Satcom Guomai's restructuring, see "China Satcom to Transfer Satcom Guomai Shares to China Telecom," MD 12/05/08 issue.