China Unicom Limited, one of China's leading mobile telecommunications companies, and China Netcom Group Corporation (Hong Kong) Limited, a leading broad band and fixed-line telecommunications operator in China, jointly announced?in Hongkong?Wednesday that the proposed merger of the two companies has been approved by their respective shareholders.
The proposed merger will create a leading fully integrated telecommunications service provider in China.
Shareholders of China Unicom and China Netcom voted in favor of the proposed merger at shareholders' meetings held on Tuesday and Wednesday, respectively.
It is expected that, subject to the satisfaction of the other conditions of the proposed merger, the proposed merger will become effective on Oct. 15, 2008.
Thereafter, China Netcom will become a wholly-owned subsidiary of China Unicom and the listings of its shares on the Hong Kong Stock Exchange and its American Depositary Shares on the New York Stock Exchange will be withdrawn. China Unicom's company name will also be changed to "China Unicom (Hong Kong) Limited."
China's economy is continuing to grow and the telecommunications industry possesses huge market potential, presenting a solid foundation for the merged group's development, said Chang Xiaobing, chairman and chief executive officer of China Unicom, at a press conference here.
"In particular, broadband services and the 3G business will be the key growth drivers of the merged group," he said.
The two companies have established a joint working group to lead the integration of China Unicom and China Netcom and ensure efficient execution of the business strategies of the merged group.
The majority of the integration work is expected to be completed one year after the merger becoming effective.
(Xinhua News Agency September 18, 2008)
