22 January 2008 – LAWFUEL – Asia Law Newswire – Clifford Chance advises Telefónica on agreements to increase its stake in China Netcom Hong Kong: Leading law firm Clifford Chance has advised Telefónica Internacional S.A.U., a wholly owned subsidiary of Telefónica S.A., on agreements to acquire from four PRC state-owned entities, an additional 2.22% stake in China Netcom, one of the mainland’s leading broadband communications and fixed-line telecoms operators.
This is a high-profile deal in the highly regulated China telecoms market worth some US$454 million in total and, when regulatory approvals are complete, will increase Telefónica’s stake in China Netcom to approximately 7.22%.
The Clifford Chance team advising Telefónica was led by partners Cherry Chan and Alison Lindsay in Hong Kong and Rupert Li in Beijing. The partners were strongly supported by Beijing associate Tianpeng Wang, senior associate Candy Chan in Hong Kong and trainee solicitor Leo Chen in Shanghai.
“Telefónica first invested in China Netcom in 2005, and is one of a very small number of foreign investors to have successfully taken a stake in a major China telecoms operator,” said Alison. “The firm is delighted to be representing Telefónica in this very exciting transaction.”