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China Telecom (HK) to Acquire Mobile Networks in China
China Telecom (Hong Kong) Ltd plans to raise 78 billion Hong Kong dollars (10 billion US) to fund the acquisition of seven mobile phone networks in China, it was reported Thursday.
China Telecom (HK), controlled by China Mobile Telecommunications (Group), is likely to raise 54 to 78 billion dollars from the issue of new shares and plans to issue bonds to raise another 11.7 billion dollars, the HK Ming Pao daily said, citing brokers.
Cash funds and loans however would still fall 113 billion dollars short of the 312 billion dollars the seven networks are worth, it said.
The report said the company told brokers about the plan recently.
It said the company has not identified the seven mobile phone networks it plans to buy but a broker source expects them to be Liaoning, Shandong, Shanghai, Beijing, Sichuan, Heilongjiang and Hebei.
Separately, the Hong Kong Economic Times said the deal will be finalised in the third quarter of this year at the earliest.
It said China's government leaders have asked China Telecom (Hong Kong) to wait until for the acquisition until after China Unicom's listing in order to minimize the negative impact to China Unicom's share offer.
China Unicom, China's second largest telecommunications operator, was expected to complete its international and public share offers on Thursday, with final pricing due on Friday.
Trading of China Unicom shares will start in New York on June 21 and in Hong Kong the following day.
The floatation is part of Beijing's attempts to turn China Unicom into a serious rival for dominant China Telecom.
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