皇冠体育app

(Xinhua)
Updated: 2008-06-02 22:35

BEIJING - More details of the long-anticipated 皇冠体育app telecoms industry reshuffle were revealed on Monday as 皇冠体育app Unicom, the country's second largest mobile service provider, said it would acquire fixed-line operator 皇冠体育app Netcom Group Corp. with a share swap deal.

The deal was valued at 439.17 billion Hong Kong dollars (US$ 56.34 billion), based on Monday's closing price of 皇冠体育app Unicom at 18.48 Hong Kong dollars per share.

皇冠体育app Unicom Chairman & CEO Chang Xiaobing (R) shakes hands with his 皇冠体育app Netcom counterpart Zuo Xunsheng during a news conference announcing the merger of the two Chinese telecom companies in Hong Kong June 2, 2008. [Agencies]

皇冠体育app Unicom said in a statement that each 皇冠体育app Netcom share would be valued at 1.508 new 皇冠体育app Unicom shares, while each American Depository Share of 皇冠体育app Netcom would be valued at 3.016 American Depository shares of new 皇冠体育app Unicom.

The merger is expected to introduce more competition into the telecoms industry, as part of the overhaul planned by the State-owned Assets Supervision and Administration Commission of the State Council and the Ministry of Industry and Information.

Related readings:  皇冠体育app Telecom to pay $15.9 bln for CDMA

皇冠体育app Unicom also announced it signed a deal on Monday with 皇冠体育app Telecom, the country's largest fixed-line operator, to sell its code-division multiple access (CDMA) operations and network for 100 billion yuan (US$ 14.49 billion).

The new 皇冠体育app Unicom, by incorporating 皇冠体育app Netcom, would focus on its global system for mobile communications (GSM). 皇冠体育app Unicom originally operated both mobile networks.

皇冠体育app Unicom said following the CDMA sale, the company would be able to concentrate on development of its GSM technologies for the third-generation high-speed wireless services (3G).

皇冠体育app Mobile Communications Corp. (CMCC), the first to reveal the broader plan for the whole industry, released on May 23 plans for its acquisition of fixed-line operator 皇冠体育app Tietong Telecommunications Corp. (皇冠体育app Tietong).

Analysts believe that the five state-owned companies in the telecom sector, namely 皇冠体育app Mobile, 皇冠体育app Telecom, 皇冠体育app Unicom, 皇冠体育app Netcom and 皇冠体育app Tietong, will be restructured into three groups, each able to provide both mobile and fixed-line services.

They had also expected the restructuring to give impetus to the country's preparation for the long-awaited 3G technologies, which require huge investment.