China Unicom and China Netcom Shareholders OK Proposed Merger

MADRID, Spain, Sep 24, 2008 (M2 PRESSWIRE via COMTEX) -- CHU | Quote | Chart | News | PowerRating -- China Unicom Limited, a mobile telecommunications company in China, and China Netcom Group Corp., a broadband and fixed-line telecommunications operator in China, jointly announced that the proposed merger of the two telecommunications companies has been approved by their respective shareholders.

Shareholders of China Unicom and China Netcom voted in favor of the proposed merger at shareholders' meetings, according to the company.

It is expected that, subject to the satisfaction of the other conditions of the proposed merger, the proposed merger will become effective on 15 October 2008. Thereafter, China Netcom will become a wholly-owned subsidiary of China Unicom and the listings of its shares on the Hong Kong Stock Exchange and its American Depositary Shares on the New York Stock Exchange will be withdrawn. China Unicom's company name will also be changed to "China Unicom (Hong Kong) Limited." Chang Xiaobing, the current Chairman and Chief Executive Officer of China Unicom, will be the Chairman and CEO of the merged group, the company said.

Chang Xiaobing, the Chairman and CEO of China Unicom, said: "We are pleased that shareholders support the proposed merger between China Unicom and China Netcom. I believe that the transaction will enable the merged group to become a world-class provider of broadband communications and information services, to offer better products and services to our customers and create greater value for shareholders.

Going forward, China's economy is continuing to grow and the telecommunications industry possesses huge market potential, presenting a solid foundation for the merged group's development. In particular, broadband services and the 3G business will be the key growth drivers of the merged group. Based on the new market landscape and regulatory environment, we will achieve rapid integration and fully realize the synergies of combining the strengths of the two companies. With the continuing efforts of all staff, we will deliver sustainable growth to best satisfy the various needs of our increasingly diverse market, whilst creating greater return on investment." Zuo Xunsheng, the Chairman and CEO of China Netcom, said: "The shareholders' votes in favor of the proposed merger between China Unicom and China Netcom have shown that shareholders believe the merger will enhance the competitive strengths and expand the prospects of the two companies such that they will be better positioned to seize the opportunities presented by the upgrade of China's telecom sector, by providing integrated telecom services and by consolidating resources. This will help to bring better returns for shareholders."

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