China Unicom (Hong Kong Ltd, 中國聯通) is to raise as much as HK$88.1 billion (US$11.3 billion) by selling new shares to its parent as part of a government-led ownership overhaul of the nation’s second-largest wireless carrier.
Unicom plans to sell as many as 6.65 billion new shares to unlisted China Unicom (BVI) Ltd at HK$13.24 apiece, or 10 percent higher than the stock’s last closing price, according to a filing with the Hong Kong stock exchange late on Tuesday.
The deal is subject to shareholder approvals, it said.
The funds, which are to be invested into upgrading Unicom’s mobile network, would come after the US$11.7 billion share sale announced earlier this week by Unicom’s parent, which drew investors such as Tencent Holdings Ltd (騰訊) and Alibaba Group Holding Ltd (阿里巴巴) as part of a Chinese government push to draw private capital into its state-owned enterprises.
Unicom was among six state-owned enterprises picked by China’s economic planner last year for a pilot program in mixed ownership — China’s preferred term for such private investments.
Separately, VIPKid, an online education company that matches Chinese students with North American teachers, raised US$200 million as it expands into new markets and broadens its academic offerings.
Internet giant Tencent Holdings Ltd (騰訊) and Sequoia Capital China (紅杉資本) are investing in the Beijing-based company. Its existing backers include Sinovation Ventures (創新工場) and Alibaba founder Jack Ma’s (馬雲) Yunfeng Capital (雲峰基金).
The start-up’s valuation is now more than US$1.5 billion, according to people familiar with the matter, who asked not to be identified discussing private details.
VIPKid has seen explosive growth as Chinese parents seek out high-quality education for their children, particularly in English. The four-year-old start-up has expanded to more than 20,000 teachers and 200,000 students.
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