Unicom, Telefonica plan new $1b share swap

Unicom, Telefonica plan new $1b share swap

Dylan Bushell-Embling  |   January 24, 2011
telecomasia.net
Thumbnail: 
China Unicom will extend its alliance with Telefonica by executing an agreement whereby each company will acquire $500 million worth of the others' shares.
 
Unicom said it will increase its stake in Telefonica to 1.37%, purchasing 21.8 million shares at €17.16 ($23.38) each.
 
Telefonica will meanwhile purchase Unicom shares from third parties at market prices, lifting its holding to an expected 9.7%.
 
Telefonica will also propose adding a Unicom representative to its board. Telefonica chairman Cesar Alierta already has a seat on the Unicom board.
 
The operators already co-operate on procurement and roaming and in areas such as platforms and wholesale carriers, and plan to deepen this collaboration.
 
Alierta said the two companies share a combined customer base of 590 million people, roughly 10% of the world's population.
 
He told Dow Jones that China's mobile market was growing at a rate equivalent to Spain's entire population every six months.
 
Telefonica and Unicom have had a strategic alliance since 2009, when each invested $1 billion in the other. This deal marked the first time a Chinese telco cross-invested in a foreign operator. Telefonica held over 5% of Unicom prior to the transaction.
Dylan Bushell-Embling

Video from Telecom Channel

Time to retire legacy applications
Deutsche Telekom CIO says highly-customized legacy apps for customer care, billing and ERP are the biggest obstacle to moving into the new app world.  
 

Frontpage Content by Category

NSN-Motorola retains top spot, while ZTE moved to No.3 position

Frontpage Content by Category

In addition to penetrating the Chinese wireless broadband sector, ChinaTel is expanding its market presence into Peru

Frontpage Content by Category

Using real-time charging to drive innovation and loyalty

Frontpage Content by Category with Image

Folds down into a flat piece of cardboard