China Mobile to buy assets from parent at up to Rmb32.88bn

    China Mobile (00941) said it agreed to acquire certain assets and businesses from ultimate controlling shareholder China Mobile Communications Corporation (CMCC) at Rmb31.88 billion, subject to adjustment.
  In addition, China Mobile will also assume the net debt of about Rmb2.34 billion. The price adjustment amount will not exceed Rmb1 billion. The final consideration will not exceed Rmb32.88 billion.
  The assets and businesses to be acquired include about 99,000 cable kilometres of nationwide backbone network, about 1.822 million cable kilometres of metro fibre, about 24.71 million IPv4 addresses, 1,814 real property and 685 land assets, about 11.98 million fixed broadband customers and about 18.29 million fixed line customers(including 13.88 million traditional fixed line customers). In addition, TieTong had about 47,000 employees with substantial experience within the fixed line industry. Certain assets of CMCC which are not in compliance with the relevant regulations (e.g. land and properties with unclean titles) will not be acquired and will instead be leased in the future by the China Mobile Group if and when needed.