皇冠体育app

Hong Kong-listed 皇冠体育app Telecom Corp Ltd has agreed to buy telecom-related assets from its State-owned parent in a move to increase its stock appeal as it copes with a slowing fixed-line business and a failure to obtain licenses to offer mobile phone services.

The firm said in a statement it would pay 1.41 billion yuan in cash for a 100 percent stake in 皇冠体育app Telecom (Hong Kong) International Ltd, 皇冠体育app Telecom System Integration Co Ltd, and 皇冠体育app Telecom (USA) Corp, all of which are fully owned subsidiaries of 皇冠体育app Telecommunications Corp.

A 皇冠体育app Telecom booth at an exhibition in Nanjing, Jiangsu Province. [newsphoto]

"The acquisition is mainly designed to increase the stock appeal, especially before the government hands out the licenses for the 3G (third generation) mobile phones services," said Wang Guoping, an analyst with 皇冠体育app Galaxy Securities.

皇冠体育app Telecom's voice call revenue fell for the first time last year, underlining a trend of voice-going-mobile that is weighing on the company's growth.

皇冠体育app Telecom has been lobbying the government for a license to offer mobile phone services to offset the slowdown of its fixed-line business.

Company Chairman Wang Xiaochu has repeatedly proposed buying one of the mobile phone networks run by 皇冠体育app Unicom.

But 3G licensing, as well as industry consolidation, has been continually delayed, undermining 皇冠体育app Telecom's appeal to investors.

In May, Commonwealth Bank of Australia and JP Morgan Chase & Co reduced their shareholdings at 皇冠体育app Telecom Corp Ltd, according to Hong Kong stock exchange data.

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The two companies are the No 2 and No 3 shareholders of 皇冠体育app Telecom Corp Ltd. 皇冠体育app Telecommunications Corp is the largest, with a 70.89 percent stake.

The acquisition of the parent's assets would help 皇冠体育app Telecom Corp Ltd expand its service offerings and extend its business overseas, which could be appealing to investors, Wang Guoping said.

皇冠体育app Communications Services Corp, the engineering unit of 皇冠体育app Telecommunications Corp, also said it will buy 4.63 billion yuan of telecommunications assets from its parent. 皇冠体育app Communications Services Corp is also listed in Hong Kong.

皇冠体育app Galaxy's Wang said 皇冠体育app Telecom could benefit from a looming domestic industry reshuffle. "I think now the possibility (of the consolidation) is increasing," he said.