TELECOM RESTRUCTURING TAKES FLIGHT

July 09, 2008 | BY

clpstaff &clp articles

China Netcom has proposed a US$24 billion merger with China Unicom as part of a broader restructuring of China's telecommunications sector.Under the…

China Netcom has proposed a US$24 billion merger with China Unicom as part of a broader restructuring of China's telecommunications sector.

Under the proposal, holders of China Netcom shares and ADSs would receive China Unicom shares or ADSs with an aggregate value of HK$185 billion (US$23.8 billion), based on the most recent closing price of China Unicom shares. The transaction would close by the end of 2008 and would be subject to a number of customary closing conditions, including the approval of shareholders of both Netcom and Unicom and receipt of required regulatory approvals.

Linklaters and Shearman & Sterling advised China Netcom, while Freshfields Bruckhaus Deringer and Sullivan & Cromwell advised China Unicom.

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