China Mobile in $5 Billion Deal to Consolidate TieTong Assetsby
China Mobile Communications Corp.’s CM TieTong agreed to buy assets from affiliate TieTong for as much as 32.9 billion yuan ($5.1 billion).
CM TieTong agreed to buy the assets for 31.9 billion yuan, though the payment may increase by as much as 1 billion yuan, according to a regulatory filing in Hong Kong. CM TieTong will also assume about 2.34 billion yuan of net debt, according to the statement.
TieTong has a nationwide backbone network and land assets in thirty-one provinces, autonomous regions and directly administered municipalities, according to the statement. It also has more than 10 million fixed broadband and fixed line customers.