China Netcom Group Corp (Hong Kong) is to announce today the acquisition of fixed-line telecommunications network operations in four provinces from parent China Network Communications Group Corp, according to chief executive Edward Tian Suning.
The acquisition would be funded by cash and a 'delayed payment' to its parent company, Mr Tian said in Beijing over the weekend.
'There will be no equity issuance in the transaction,' he said. 'The deal will be announced [today when] we will also release our interim results.'
The four provincial networks are in Jilin and Heilongjiang in northeast China, and Shanxi and Inner Mongolia in the north. They comprised fixed-line telephony and broadband internet operations, Mr Tian said.
He declined to disclose the transaction value, the customer numbers and financial figures of the networks. But he said they were all profitable in May.
China International Capital Corp, Citigroup and Goldman Sachs were appointed to conduct a valuation on the networks for the connected transaction that was first announced in April.