China Telecom (HK) to acquire 7 mobile networks in China
Jun 16 2000 1:33PM
Homeway
China Telecom (Hong Kong) Ltd (0941.HK) plans to raise HK$78 billion (US$410 billion) to fund the acquisition of seven mobile phone networks in China, China Daily reported on its website yesterday.
China Telecom (HK), controlled by China Mobile Telecommunications (Group), is likely to raise HK$54 to HK$78 billion from the issue of new shares and plans to issue bonds to raise another HK$11.7 billion, the Hong Kong Ming Pao Daily said, citing brokers.
Cash funds and loans however would still fall HK$113 billion short of the HK$312 billion the seven networks are worth, it said.
The report said the company told brokers about the plan recently. The company has not identified the seven mobile phone networks it plans to buy but a broker source expects them to be Liaoning, Shandong, Shanghai, Beijing, Sichuan, Heilongjiang and Hebei.
Separately, the Hong Kong Economic Times said the deal will be finalized in the third quarter of this year at the earliest.
It said China's government leaders have asked China Telecom (Hong Kong) to wait until for the acquisition until after China Unicom's listing in order to minimize the negative impact to China Unicom's share offer.
China Unicom, China's second largest telecommunications operator, was expected to complete its international and public share offers on Thursday, with final pricing due on today.
Trading of China Unicom shares will start in New York on June 21 and in Hong Kong the following day.
The floatation is part of Beijing's attempts to turn China Unicom into a serious rival for dominant China Telecom.
chinaweb.com |
