China Unicom’s $10 billion financing or current Alibaba and Tencent figure

[Global Science and Technology Report] June 23 news, according to sources quoted by Reuters, Alibaba and Tencent, two major technology giants will participate in China Unicom's $ 10 billion financing, and Baidu will withdraw.

According to informed sources, the China Unicom plans to raise about 70 billion yuan (about 102.5 US dollars). According to Thomson Reuters data, this will be the largest financing in Asia since 2010, and about 50 billion yuan will be raised through the issue of new shares.

At the same time, China Unicom plans to sell part of its equity in Shanghai's listed business.

On April 5 this year, China Unicom issued an announcement that its parent company, Unicom Group, is planning and advancing major issues related to the reform of the mixed ownership system. The major event is planned to use the controlling shareholder China United Network Communications Co., Ltd. as a platform, which may involve Unicom A shares of the company's stock changes.

On the evening of April 25, China Unicom issued an announcement again, stating that the company intends to introduce strategic investors through non-public issuance of shares, but the specific implementation plan involves pre-examination and approval procedures of multiple government departments, and there is uncertainty and confusion. Changes are still in the process of soliciting opinions from relevant government departments. China Unicom announced that the stock will continue to be suspended from April 26, 2017.

According to media reports, Wang Xiaochu, chairman of China Unicom, once stated that the mixed reform involves many departments and needs to communicate with ten ministries and commissions. Many ministries communicate with him personally and it is very difficult. However, a final verdict will be announced in real time. He also said that the mixed reform plan will include the issuance of new shares and the sale of old shares.

Wang Xiaochu said that the purpose of Unicom mixed reform is not to raise funds, but to coordinate policy development and make the Group's operations more market-oriented. However, Unicom and the A-share companies are closely related, I believe it will help China Unicom to develop, especially in the future in innovative services, 5G, etc. The field needs a lot of money to invest.

According to currently disclosed information, other potential investors include Alibaba and Tencent, including some major Internet companies and state-owned institutions such as China Life Investment Holding.

As of now, none of Alibaba Tencent Unicom has responded to this news.

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