China Unicom Ltd, the smaller of the nation's two mobile-phone
carriers, will buy its parent's cellular network in Guizhou
Province for 880 million yuan (US$119 million) to expand
coverage.
China Unicom will pay China United Telecommunications Corp in
cash, the company said in a Hong Kong stock exchange filing on
Friday. The Guizhou unit had a profit of 37.3 million yuan in 2006,
with a net asset value of 661 million yuan.
"Following the acquisition, cellular operations will be expanded
to cover all provinces, cities and autonomous regions in China,"
China Unicom said. "The transaction will also strengthen the
revenue base and improve profitability."
The acquisition is China Unicom's last of a provincial operating
unit, Bloomberg News said. The company served 12 eastern and
coastal provinces at the time of its Hong Kong initial share sale
in 2000. It subsequently bought China United's other operating
units.
(Shanghai Daily November 19, 2007)
