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)
