China Unicom shares soar on $11.7 bn stake sale plan
SHANGHAI: Shares in China’s second-largest telecoms carrier Unicom soared on Monday after it reiterated previously retracted plans for an almost $12 billion stake sale involving high-profile investors including Tencent, Baidu, and Alibaba.
China United Network Communications Ltd (CUNC), the Shanghai-listed arm of China Unicom, will sell shares worth 77.9 billion yuan ($11.7 billion) to 10 investors, according to a statement to the Shanghai exchange.
China United Network Communications shares, which were suspended since April as the ownership plan was being hashed out, (SOEs) by luring in private capital. An investment company linked to jumped by the 10 per cent daily limit The 10 strategic investors, who get e-commerce giant Alibaba’s founder in Shanghai after the announcement. their stakes at 6.83 yuan per share, will Jack Ma will obtain a little over two
China Unicom shares in Hong own 35.19 per cent of the Shanghai per cent. Kong surged more than eight per cent. arm while Unicom remains as the Other investors include
The plans were first announced company’s biggest shareholder. e-commerce company JD.com, statelast week but, puzzlingly, were quickly An investment company linked owned China Life Insurance, and retracted for “technical reasons”, to Tencent, which owns popular Suning Commerce Group, whose leaving investors in limbo. messaging app WeChat, will buy 5.33 parent owns the AC Milan football
But they were re-released club.inthepercentoftheShanghai-listedarm latest statement, unchanged and with for 11 billion yuan with a state-owned Unicom Group was among six no elaboration on the reasons for the partner. SOEs chosen by Beijing in China last earlier about-face. An arm of Chinese search-engine year for a pilot programme to funnel
The plan is part of the Chinese giant Baidu will take a 3.39 per cent private capital into state firms, which government’s push to overhaul stake for 7 billion yuan, also with a has seen Unicom-related shares soar inefficient state-owned enterprises partner. this year.