China Unicom to buy back 3.8% stake from S Korea SK Telecom

South Korea's leading mobile company, SK Telecom Co, said Monday it will sell its 3.8-percent stake in China Unicom Ltd back to the Chinese mobile carrier.

According to SK, the sale of shares will be completed in mid-November after gaining approval from independent shareholders of China Unicom.

The total proceeds from the stake sale are estimated to reach 1.5 trillion won, or $1.26 billion, SK added.

SK Telecom initially purchased China Unicom's convertible bonds worth $1 billion in July 2006, which it later converted into stocks.

The company said the sales of the Hong Kong Stock Exchange-listed company was made as part of its broader move to adjust its business portfolio to better reflect changes in overall growth strategy.

With the earnings from the sales, SK Telecom is planning to secure financial soundness and to acquire research and development capability for the sake of its competitiveness.

The company emphasized it will continue to maintain its partnership with China Unicom, adding that it plans to increase its existing business presence in China.

Source: BizChina