China Network Communications Group, the country's fourth-largest telecommunications carrier, will resolve the long-delayed issue of its complicated asset structure through a buy-back arrangement.
Netcom, which inaugurated its international division yesterday, said it would set up a shareholding firm as a vehicle for future listing.
Through the buy-back arrangement, Netcom is hoping to end the fragmented nature of the assets under its control, and sort out the exact shareholding of their foreign investors which include News Corp and United States investment banking powerhouse Goldman Sachs.
After dragging on for more than a year, Netcom resolved in September to restructure by dividing group assets and operations into three companies - northern, south and international entities - although the equity issue had yet to be sorted out.
'The plan is that the three new companies of the group will jointly set up a stock holding company and this new entity will buy back the equity stakes of the group's assets from their existing shareholders,' a Netcom spokesman said.
Reuters quoted president Zhang Chunjiang as saying at yesterday's ceremony, 'China Netcom Group is working hard to speed up our restructuring, shareholding reform and listing plan.'