China Unicom to Raise CNY78 bn from 14 New Shareholders

Updated:2017/8/17 16:18

After four clarifications and eight suspensions, China Unicom confirmed its mixed ownership reform scheme and new shareholders.

The investors will subscribe to about 9 billion new shares and purchase 1.9 billion shares of the Shanghai-listed unit, which are priced at CNY6.83 per share. They will hold about 34.9 percent of the shares in the Shanghai-listed unit.

Also, the investors will give employees the opportunity to buy nearly 850 million shares priced at CNY3.79 per share.

The total investment will be about CNY78 billion.

China's largest Internet companies Tencent, Baidu, Alibaba and other companies including state-run ones, will invest in China Unicom.

The private capital injected to China Unicom includes CNY11 billion from Tencent, 5.21 percent of the total, CNY7 billion from Baidu, 3.31 percent, CNY4.33 billion from Alibaba, 2.05 percent and CNY5 billion from Jingdong, 2.36 percent.

A state-run corporation China Life Insurance has participated in the mixed ownership reform and will invest CNY21.7 billion, having a 10.22 percent stake.

After the deal, China Unicom Group will hold 36.7 percent of shares in the Shanghai-listed unit, investors 35.2 percent, employees 2.7 percent, public shareholders 25.4 percent.

China Unicom claims it will introduce the representative of new shareholders to the board of the Shanghai-listed unit.

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