Alibaba and Tencent among new investors pouring $10 billion into China Unicom: Sources
Alibaba and Tencent among new investors pouring $10 billion into China Unicom: Sources

Chinese tech giants Alibaba Group Holdings and Tencent Holdings will be among new investors pouring a total of around $10 billion into mobile carrier China Unicom, sources said, part of the country’s mixed-ownership reform efforts to inject private capital into state-run enterprises.

Four sources with knowledge of the matter told Reuters that Alibaba and Tencent would invest in the Shanghai-listed unit of the telecoms group, China United Network Communications Ltd as part of the capital-raising effort.

One of the sources said, "Alibaba and Tencent would lead the group of investors, while Baidu, the third of China's constellation of tech giants, has pulled out."

According to the sources, China Unicom, formally known as China United Network Communications Group Co Ltd, plans to raise around 70 billion yuan ($10.25 billion) through the Shanghai unit.

About 50 billion yuan would be raised through new share issues, while China's second-largest telecom carrier would also sell part of its stake in the Shanghai-listed unit, two of the sources said.

According to a source, "Other potential investors approached by China Unicom, named last year as part of a pilot mixed-ownership reform scheme, include the country's other major internet firms and some state-backed institutions, such as China Life Investment Holding Co Ltd."

Alibaba, Tencent and other potential investors have yet to finalise the terms of any purchase, the sources said, though the deal is likely to be finalised by this summer.

 

 

 
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