Telefonica Sells Part of its holdings in China Unicom
Published on: 10th Jun 2012
Note -- this news article is more than a year old.
Spain's Telef nica has announced that it is selling just under half of its holding in China Unicom's listed subsidiary for around EUR1.13 billion (USD1.62 billion).
The sale is for 4.56% of China Unicom Hong Kong, leaving Telefonica with a 5.01 percent stake in the company. China Unicom's state owned parent company owns around 72% of the Hong Kong listed subsidiary, and will see this rise to 76.52% after the deal is completed.
In a statement, Telefonica said that while the transaction reflects its decision to proactively manage its asset portfolio, both Telefónica and China Unicom continue to be fully committed to their Strategic Alliance.
Telefonica has undertaken not to sell any more shares in China Unicom for at least one year.
Telefonica's Chairman, Mr. César Alierta will continue to be a Board Director of China Unicom, while Mr. Chang Xiaobing, Chairman of China Unicom, will remain as member of the Board of Directors of Telefónica.
Telefonica increased its holding in China Unicom Hong Kong to around 9.7% last January, in a deal which also saw the Chinese firm increase its stake in Telefonica to 1.37%.