06/02/2008: China Unicom Hong Kong Limited. (SEHK:762) / China Netcom Group Corp. (Hong Kong) Ltd.
2008 M&A Deals You Should Know – China Unicom / China Netcom
Acquirer: China Unicom
Target: China Netcom
Date: 6/2/2008
Deal Size: $32.9 Billion
China Unicom, the country’s second largest mobile service provider, acquired fixed-line operator China Netcom Group Corp. with a share swap deal.
China Unicom said in a statement that each China Netcom share would be valued at 1.508 new China Unicom shares, while each American Depository Share of China Netcom would be valued at 3.016 American Depository shares of new China Unicom.
The merger is expected to introduce more competition into the telecom industry, as part of the overhaul planned by the State-owned Assets Supervision and Administration Commission of the State Council and the Ministry of Industry and Information.
Investment banks involved:
China International Capital Corporation, Citigroup, N M Rothschild & Sons (Singapore), JP Morgan (Asia Pacific), Merrill Lynch