The China Netcom Group Corporation (Hong Kong) Limited (referred
to as Company) announced yesterday that the China Netcom Group is
planning to sell off some of its subsidiaries that are not involved
with its core business in order to promote restructuring.
According to the Company, the number of properties to be sublet
from the China Netcom Group to CNC China, a wholly owned subsidiary
of the Company, is expected to be substantially reduced. In this
way the total rent payable by CNC China to the China Netcom Group
under the?sub-lease agreements would be minimal.
CNC China entered into various connected transaction agreements
with the China Netcom Group in order to, among other things, renew
the term of the existing interconnected transaction agreements
between CNC China, the China Netcom Group and New Horizon
Communications, all of which have a term expiring on December 31,
2007.
The China Netcom System Integration and the China Netcom Group
entered into a new agreement under the same terms and conditions as
the Information and Communications Technology Agreement. Their new
agreement goes into effect on January 1, 2008.
Officials from the China Netcom Group said that the agreement is
part of the group's internal restructuring. They denied any link
between this and a complete restructuring of the telecom
industry.
An industry insider said on the condition of anonymity that for
fix-line operators, which have seen sluggish profit increases in
recent years, the peel off?of some?subsidiary assets
would help them to develop their competitive businesses and finally
garner a lucrative position?in the future restructure of the
telecom industry.
For more details, please read the full story in Chinese (http://www.bbtnews.com.cn/mainland/channel/31937.shtml).
(China.org.cn November 13, 2007)
