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China Unicom to buy back SKT stake
04 November 2009
China Unicom shareholders have approved a move to buy back the 3.8% stake held by innovative South Korean operator SK Telecom for $1.28 billion
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China Unicom
SKT
SK Telecom
Telefónica
Korea
Comment: China Unicom’s partnership with SK Telecom went back a few years, but the company has formed a new relationship in the past few months, with Spanish-based Telefónica: each company is to buy shares in the other. China Unicom and Telefónica haven’t even had their honeymoon yet: in time we’ll see how it works out.
The Hong Kong shareholders in China Unicom have approved its plan to repurchase a 3.8% stake from SK Telecom. The Chinese telecom operator will acquire the stake for $1.28 billion.
The company had proposed in September to repurchase 899 million of its shares from South Korean mobile operator, SK Telecom. The resolution presented to the China Unicom board received 75% of the shareholder votes in its favour.
China Unicom will finance the share buyback by using its cash flow and working capital. It may also use external financing or a combination of all the alternatives to fund the repurchase. GTB