(Yicai Global) Feb. 12 -- Major telecoms firm China United Network Communications Ltd., better known as China Unicom, has published details of the last plank in its mixed ownership reform, a plan to issue stock to some employees.
China Unicom has released a draft proposal to grant up to 848 million shares to more than 7,800 employees in a first round, accounting for 2.8 percent of total stock, the Beijing-based company said in a press briefing. It will reserve nearly 45 million shares, or 5.3 percent of the total granted and 0.1 percent of Unicom's total shares.
Eligible employees include mid-level executives, core managers and professionals. Wang Xia, the carrier's board secretary, and Chief Financial Officer Jiang Aihua will each receive 216,000 shares.
Shares in China Unicom [SHA:600050] slumped to a low of CNY6 and closed at CNY6.01 (USD0.95) on Feb. 9, affected by losses seen across A-share markets last week. They gained 2 percent to CNY6.13 today.
China has turned to mixed ownership reform, where private companies take stakes in state-owned enterprises, in a bid to boost their efficiency. China Unicom announced its plan last August, which included the chance for external investors to subscribe to a private placement of 9 billion new shares, and purchase a further 1.9 billion in the parent company.
Tech giants Baidu Inc., Alibaba Group Holding Ltd., Tencent Holdings Ltd. and JD.Com Inc., collectively known as BATJ, have since taken stakes in Unicom and have board seats. After the changes are complete, China Unicom Group's stake in China United Network Communications will fall to 37.70 percent from 62.74 percent.