China Telecom (Hong Kong)'s interim earnings will receive a 25 per cent lift if it acquires three mobile-phone networks from its parent company, according to its financial adviser.
In a China Telecom circular to shareholders, financial adviser Schroders said the company's net profit would have risen $921.5 million for the first six months of the year, if the acquisition had occurred at the beginning of the year.
China Telecom reported a net profit of $3.75 billion in the first half.
The three target companies were expected to report profits of 2.47 billion yuan (about HK$2.29 billion) for the full year, compared with 1.21 billion yuan for the first six months.
China Telecom chairman Wang Xiaochu said in the circular that with the addition of 3.4 million subscribers from the three targeted networks, the company's subscriber base would rise from 26.2 per cent to 36.3 per cent of the mainland's mobile-phone users.
China Telecom announced its $49.71 billion acquisition plan earlier this month.
