China Netcom Sells Undersea Fiber Optic Cable Business

4:00 am on June 6, 2006 | Category: Business, Telecom Services

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China’s second largest landline telephone operator, China Netcom Group, has announced the sale of its underwater cable subsidiary, Asia Netcom Corp. to two global investment funds.

Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Ltd. agreed last Friday to pay a total of US$168,840,000 for the company, whose fiber optic communication network connects Hong Kong, Taiwan, Singapore, South Korea, Japan, and the Philippines.

The deal adds a major new asset to the two investment funds, while fitting in with China Netcom’s strategy of focusing on the development of new services in mainland China.

The Chinese company has made a decent profit from Asia Netcom, which it purchased in 2003 for US$120 million, plus the assumption of unspecified liabilities.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock