1 billion dollars in hand Netcom PCCW analysts say this is the prologue

China network communication group company long-awaited (referred to as: China Netcom Group) and Hongkong Pccw Limited (referred to as: PCCW) transactions in January 20th turnover. Industry analysts and executives said that this may be just a prelude to China's telecommunications companies to invest in Hk Telephone Company (especially mobile phone operators) prelude.

Reporters learned from PCCW in January 20th, China Netcom Group and PCCW has established a strategic partnership to jointly expand the mainland and international business agreement. Under the agreement, China Netcom Group will be 5.90 Hong Kong dollars per share, the purchase of listed in Hong Kong, PCCW's share capital after the expansion of the equity interest of about $1 billion (about HK $7 billion 900 million).

Due to the high potential of the telecommunications market in the mainland, PCCW will set aside approximately HK $5 billion for the telecommunications business opportunities in the mainland. At the same time, the China Business Development Committee was established by the PCCW and China Netcom Group appointed two representatives as members of the committee.

It is understood, according to the agreement, the transaction to PCCW shareholders after the Chinese Netcom Group will appoint three directors to the board of directors of PCCW, participate in the development strategy of PCCW, one of them will also serve as vice chairman of pccw.