China Mobile (HK) to acquire 10 provincial networks
29/4/2004 15:24
China Mobile (Hong Kong) Limited announced yesterday that it has
signed a conditional sale and purchase agreement to acquire 100 percent equity
in 10 provincial networks, China Mobile Communication Company Limited and Jingyi
Design Institute, from its parent China Mobile Hong Kong (BVI) Limited, today's
Shanghai Securities Times reported.
The 10 provincial networks,Inner
Mongolia, Jilin, Heilongjiang, Guizhou, Yunnan, Xizang, Gansu, Qinghai, Ningxia
and Xinjiang Mobile Communication Company Limited, China Mobile Communication
Company Limited, are the leading mobile services providers in each of their
respective service regions.
The value of the companies involved in the
purchase deal is US$4 billion.
As of December 31, 2003, the companies
had a total of 24.50 million subscribers with an average mobile penetration rate
of 16.8% in their service regions. This mobile penetration rate is still low
compared with those of more mature international markets, reflecting significant
growth potential for the companies.
Their forecast combined 2004 gross
earnings are unlikely to be less than 12 billion yuan (US$1.45 billion), while
their forecast combined 2004 net profit is unlikely to be less than 3 billion
yuan.
|
