Investment company Mingly Corp said it has agreed to subscribe to 116.1 million new shares in China Telecom (Hong Kong) for about $1.37 billion.
The shares will represent 1 per cent of the enlarged issued share capital of China Telecom after completion of the global offering but before taking account of any exercise of the underwriters' over-allotment option.
Mingly Corp, chaired by Cha Chi-ming, who has a close business relationship with Beijing, said the shares, priced at $11.80 each, would be acquired through its wholly owned subsidiary Five Peaks Holdings.
The subscription constitutes a discloseable transaction for the company under the rules governing the listing of securities on the Hong Kong stock exchange.
Completion of the deal is expected to be on or around Wednesday.
China Telecom, which has applied for a listing on the Hong Kong stock exchange and New York Stock Exchange, is the dominant provider of cellular telecommunications services in the provinces of Guangdong and Zhejiang.
