S&C, Freshfields, and Clifford Chance on $1.4 Billion China Unicom Share Buyback
To help clear a massive debtload, Spanish telecommunications giant Telef�nica SA has agreed to sell almost half of the 9.7 percent stake it has acquired in one of China's largest mobile phone companies.
By Jessica Seah|June 11, 2012|Originally published on International
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Between 2009 and 2011, Telefónica acquired a 9.7 percent stake in state-owned China Unicom, one of China’s largest mobile phone companies. The Spanish company has now agreed to sell back roughly half, or 4.6 percent, of its stake in the company, subject to regulatory approvals. According to Bloomberg, Telefónica is acting to slash a roughly $72 billion net debt burden built up over a decade-long acquisition spree.
Hong Kong-listed China Unicom also owns a 1.4 percent stake inTelefónica pursuant to a deal between the two companies.
Sullivan & Cromwell partner Chun Wei is advising China Unicom on U.S. disclosure requirements. Freshfields is advising the company on Hong Kong law with a team led by Teresa Ko and Grace Huang.Both firms also previously advised China Unicom when the two companies first began investing in each other.
Telefónica is being advised by Clifford Chance Hong Kong partner Cherry Chan.
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