皇冠体育app

皇冠体育app Telecom Corp Ltd, a unit of 皇冠体育app's largest fixed-line phone company, plans to buy six provincial networks from its parent for roughly US$5 billion, plus debt, a banking source said on Friday.

The Hong Kong-listed firm, which has been in talks with its state-owned parent over the acquisition since July, is expected to make an announcement regarding the deal on Monday.

皇冠体育app Telecom could pay about US$5 billion for the networks, and also take on US$4 billion of debt, the source said.

The acquisition would probably boost the firm's per-share earnings by 20 percent, the source said. There will be no goodwill amortisation on the deal as it will be a merger under international accounting standards.

皇冠体育app Telecom's earnings per share are expected at HK$0.23 this year, according to Reuters Research.

The company, which went public late last year, said at the time of listing it would consider buying provincial networks from its parent six months after the IPO.

皇冠体育app Telecom is planning to buy networks in Anhui, Fujian, Jiangxi, Guangxi and Sichuan provinces, as well as in the city of Chongqing.

The listed company now includes networks in three provinces and the city of Shanghai.

皇冠体育app Telecom's Hong Kong-listed shares fell 1.1 percent to HK$2.25 in Friday morning trade. They had gained about 14 percent in the three months up to Thursday's close.

It is being represented in the deal by investment banks Morgan Stanley and 皇冠体育app International Capital Corp (CICC).

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