China Unicom to Acquire Fixed-Line Subsidiary from Parent
Hong Kong Stock Exchanges and Clearing, 11/21/12
China Unicom (NYSE: CHU; 0762.HK; 600050.SH) has announced that China United Network Communications Corporation Limited (CUCL), a wholly-owned subsidiary of the Company, agreed to acquire from Unicom Group a 100% equity interest in Unicom New Horizon, which owns fixed-line telecommunications network assets located in 21 provinces and cities in Southern China. The total consideration for the Proposed Acquisition is RMB 12,165,750,000 (equivalent to approximately HKD 14,987,990,000). Pursuant to the 2-Step Approach, on November 21, 2012, the following agreements were entered into in connection with the Proposed Acquisition:
1. Unicom Group and Unicom A Share Company entered into the Equity Acquisition Agreement pursuant to which Unicom A Share Company agreed to acquire a 100% equity interest in Unicom New Horizon, on the basis that Unicom A Share Company has the right to transfer all of its rights and obligations under the Equity Acquisition Agreement to CUCL, subject to, among others, the approval of the independent shareholders of Unicom A Share Company; and
2. Unicom A Share Company and CUCL entered into the Transfer Agreement pursuant to which Unicom A Share Company agreed to transfer all of its rights and obligations under the Equity Acquisition Agreement to CUCL so that CUCL will enter into the Proposed Acquisition on the same terms (including the Consideration) as those set out in the Equity Acquisition Agreement, subject to the approval of the Independent Shareholders of the Company and the satisfaction (or, if applicable, waiver) of all of the other conditions to the completion of the Proposed Acquisition.
Keywords: CUCL Unicom New Horizon China Unicom fixed-line telecom 0762.HK 600050.SH CHU M&A
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