Spanish telecom and China Unicom red chip companies to increase their holdings

January 23, China Unicom (600050) holding subsidiary of China United Network Communications (Hong Kong) Co., Ltd. (Unicom Red-chip company) and Telefónica concluded a strategic alliance to strengthen the agreement.　　Under the agreement, Telefónica will fund 500 million of billions of dollars to subscribe to red-chip companies, and Unicom's red-chip company will also fund about 370 million euros to acquire the corresponding stake in Telefónica.　　In the 9 months after the agreement is signed, Telefónica will, at a total cost of USD 500 million, execute on the market one or more of the prices, times and methods deemed appropriate by Telefónica and take one or more transactions to purchase the common shares of HK $0.1 per share of the share capital of the company. At the same time, the Unicom red chips will be in the form of a single transaction, the acquisition of Telefónica will be sold to China Unicom Red chips listed on the Spanish stock exchange and by the Spanish telecom itself to buy back and stock holdings, The total purchase price of all Spanish telecom stock shares is about € 370 million, calculated by a share of about 21.827 million common shares with a nominal value of € 1 in Spanish Telecom equity.　　China Unicom expects acquisitions to be completed no later than January 27. After the completion of the series of acquisitions, the company's interest in Telefónica will be increased from about 40.7307 million shares of Telefónica's shares to about 62.558 million shares of Telefónica's shares, accounting for 1.37% of Telefónica's issued share capital.　　As of now, Telefónica owns about 1.97 billion shares of Unicom red Chips company, accounting for 8.37% of the issued share capital of Unicom.　　Since the signing of the Strategic Alliance Agreement in September 2009, China Unicom and Telefónica have made good progress in the agreed strategic cooperation, especially in the areas of procurement cooperation, cross-border Customer development and service, cooperation and cooperation in international communication organizations, network design and optimization, and joint executive training.　　China Unicom said that through the signing of the "Enhanced Strategic Alliance Agreement", the two sides agreed to further deepen business cooperation in the areas of procurement, mobile communication service platform, multinational customer service, network capacity wholesale carrier, international roaming, technology and research and development, international business development, cooperation and practical experience sharing. Telefónica has agreed to recommend, at its next shareholder meeting, that the company designate an individual as the new director of the Spanish Telecom board.