[ET Net News Agency, 6 November 2020] China Unicom (Hong Kong) Limited (00762) said its
wholly-owned subsidiary CUCL has entered into an acquisition agreement with Unicom Group,
which is the ultimate parent company of China Unicom.
Pursuant to the deal, CUCL has agreed to acquire a 51% stake in FAW Communication
Science and Technology from Unicom Group for RMB131.23 million, or HK$150.73 million.
China Unicom said the acquisition will strengthen the cooperation between the group and
China FAW Group Co., Ltd., which holds the remaining 49% equity interest in FAW
Communication Science and Technology, creating a strong alliance so as to complement each
other's advantages, and leverage synergistic benefits, which in turn could help promote
the development and improve competitiveness and operation efficiency of FAW Communication
Science and Technology, thus further drive the growth of revenue and profit of the group
in future.
The main business scope of FAW Communication Science and Technology includes software
development, information technology services, system integration, Internet access,
Internet content services, broadband networks and value-added services, etc. (KL)