HONG KONG-Hutchison Whampoa Ltd. said it will invest $400 million in China Unicom in its pending initial public offering. In addition, the companies will cooperate in various telecommunications activities in mainland China.
Through a strategic placing agreement, Hutchison will acquire at China Unicom’s IPO $400 million of shares in the company.
China Unicom plans to list on the Hong Kong Stock Exchange in June.
The scope of the cooperative joint venture will be nationwide, providing telecom-related consultancy and training in areas of network planning, design and optimization; operation maintenance; marketing and sales; and customer service.
“We are excited to be given the opportunity to invest in China Unicom Ltd.,” said a Hutchison spokesman.
“Access to the mainland market also extends our telecommunications footprint to cover most of the major markets in the world.”
