China Unicom and China Netcom Group have jointly announced that the proposed merger of the two telecom companies has been approved by their respective shareholders.
It is expected that, subject to the satisfaction of the other conditions, the proposed merger will become effective on October 15, 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of its shares on the Hong Kong Stock Exchange and its American Depositary Shares on the New York Stock Exchange will be withdrawn.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 CEO of China Unicom, will be the chairman and CEO of the merged group.
Mr Xiaobing 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.