China Tower, a subsidiary of China's three basic telecom operators, signed an agreement with the three telecom giants and China Reform Holdings Corporation Ltd. on Wednesday afternoon.
According to the agreement, China Tower will procure all existing telecom towers and relevant assets from China Mobile (CHL.NYSE; 00941.HK), China Unicom (CHU.NYSE; 00762.HK; 600050.SH) and China Telecom (CHA.NYSE; 00728.HK).
A previous asset checkup and appraisal shows these towers and assets are worth about 231.4 billion yuan. China Tower will buy them by paying cash and offering shares to the telecom carriers.
Meanwhile, it will introduce China Reform Holdings in as its new shareholder. After the capital injection, China Reform Holdings will become the fourth shareholder of China Tower, holding a six percent stake.
China Mobile, China Unicom and China Telecom will respectively hold a 38 percent stake, a 28.1 percent stake and a 27.9 percent stake in China Tower.
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