(Yicai Global) Sept. 21 -- China’s state-owned telecommunication carrier, China United Network Communications Group Co., has started substantive negotiations regarding its ‘mixed ownership reform’ with four important strategic investors from the internet technology market, the group’s chairman Wang Xiaochu said at a meeting of shareholders.
Its listed arm, China United Network Communications Ltd. [SHA:600050], better known as China Unicom, held an extraordinary shareholders meeting yesterday, and approved an A-share private placement proposal, Beijing Business Today reported.
It has kicked off negotiations with Baidu, Inc. [NASDAQ:BIDU], Alibaba Group Holding Ltd. [NYSE:BABA] Tencent Holdings Ltd. [HKG:0700] and JD.com, Inc. [NASDAQ:JD] regarding cooperation in ‘new retail,’ Cloud computing, home internet and the Internet of Things businesses.
The telecom service provider plans to issue 9 billion A shares via private placement, according to its mixed ownership reform plan released in mid-August. Private strategic investors include industry leaders such as Tencent, Baidu, Alibaba and JD.com and industry funds.
The plan has been approved by the National Development and Reform Commission (NDRC), China’s top macro-economic planner, and the State-owned Assets Supervision and Administration Commission of the State Council. After its adoption at the recent shareholders conference, the plan will be submitted to China Securities Regulatory Commission (CSRC) for approval.