China Mobile to spend $30 billion for seven networks
China's largest listed mobile communications operator China Mobile (Hong Kong) Ltd. is to spend $30 billion to acquire seven mobile phone networks from parent China Mobile Communications Corp., a report said Wednesday.
To finance the acquisition, China Mobile is expected to raise eight billion dollars from an international share placement and issue $20 billion worth of new shares to its parent, Hong Kong Economic Times cited market sources as saying.
It will also secure a 1.5 billion yuan ($183 million) loan from Bank of China and China Construction Bank, and sell $500 million worth of convertible bonds.
The company will hold a 10-day roadshow from October 16 for the international share placement scheduled for the end of the month -- the first ever for a mainland telecom firm, the report said.
The sources said China Mobile is planning to introduce no more than two strategic partners from the fund raising, adding the company has been in talks with Vodafone, Deutsche Telekom and British Telecommunications.
They said China Mobile will sell no more than a 5.0 percent stake to international investors and the Chinese government has no intention to cut its holdings in China Mobile shortly from the current 76 percent.
The seven mobile phone networks are in Beijing, Tianjin, Shanghai, Liaoning, Hebei, Shantung and Guangxi, which by the end of 1999 has customers of up to 10.26 million.
In May, the firm was renamed from China Telecom following the restructuring of its Chinese parent.
China Mobile Communications is controlled by the Chinese ministry of information industry.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)