China Unicom Shareholders Nod HKD10bn Share Repurchase

China Unicom (Hong Kong) Ltd. (SEHK: 0762 and NYSE: CHU) has been greenlighted by its shareholders to repurchase 899.7 million shares from its South Korean peer SK Telecom Co., Ltd. (SEO: 017670), the Chinese telecoms operator announced lately.

Accounting for 3.8% of China Unicom's capital stock, the shares will be priced at HKD 11.105 apiece or HKD 9.99 billion in total, which will be paid with the acquirer's cash flow, working capital or newly raised money, or in all the three ways.

The former China Unicom Ltd. offered USD 1 billion worth of convertible bonds to SK Telecom as early as July 2006 with an exercise price of HKD 8.63 per share. In September 2007, the South Korean telecoms operator converted the bonds into 899.75 million shares or a 6.61% stake, which was diluted to less than 4% after China Unicom Ltd. was integrated with the former China Netcom Group Corp. (Hong Kong) Ltd. into present China Unicom.

Source: www.hexun.com (November 04, 2009)

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