The move was made in line with an agreement the company signed with its parent company last November to acquire the entire issued-share capital of Unicom New Century (BVI) Ltd from China Unicom (BVI) Ltd, which is controlled by China Unicom Group Corp.

The cellular businesses fall under the banner of Unicom New Century Telecommunications Corporation Ltd, which is wholly owned by Unicom New Century (BVI) Ltd. The company provides mobile telecommunications services in areas of Jilin, Heilongjiang, Jiangxi, Henan, Shaanxi and Sichuan provinces, the Chongqing Municipality, and the Guangxi Zhuang and the Xinjiang Uygur autonomous regions.

Sources said the purchase price was 22.5 billion yuan (US$2.71 billion), of which 4.8 billion yuan (US$578 million) was paid in cash. The remaining 17.7 billion yuan (US$2.13 billion) will be used to cover Unicom New Century Telecommunications Corporation Ltd's debt.

The acquisition will further strengthen the market position and competitiveness of the company in the Chinese cellular telecommunications industry, said Yang Xianzu, chairman and chief executive of China Unicom.

"Also, it will help centralize investment planning and enhance efficiency in financial management, as well as further improve corporate governance and management standards, " he said.

Company figures indicate that by the end of November, China Unicom had signed more than 61 million mobile subscribers, accounting for more than 30 percent of the national total.

(China Daily January 3, 2002)