Hong Kong – 16 November 2005 – LAWFUEL – The Law News Network – The Hong Kong office of international law firm Clifford Chance is advising China Netcom Group Corporation (Hong Kong) Limited (“CNC”), a company listed on the Hong Kong and New York Stock Exchanges, on its strategic alliance with Telefónica Internacional S.A. (Telefónica) in a broad range of telecommunications businesses and services. CNC will allow Telefónica to raise its stake to 9.9 percent from 5 percent as part of the strategic alliance.
Commenting on the deal, partner Amy Lo of Clifford Chance said:
“The deal is interesting as it comes at a time when China is widely expected to restructure its telecommunications sector and issue 3G licences next year. As a result, international telecoms operators are actively pursuing link-ups with Chinese telecoms operators and we are delighted to have assisted China Netcom in its alliance with Telefónica.”
CNC is one of the four largest telecommunications operators in China and a leading international data communications operator in the Asia-Pacific region (having previously acquired the Asian network from the former Global Crossing). Telefónica is one of the largest telecommunications operators in the world with operations across 18 countries. The two companies will discuss co-operation in areas including call centre services, mobile phone business, international business, provision of telecom services in certain provinces in China, as well as the exchange of senior management.
The Clifford Chance team advising China Netcom was led by Hong Kong partner Amy Lo, who was assisted by Hong Kong consultant Amy Ho, and associates Clara Yee in Shanghai, Justin Wilson in Beijing, Michelle Chan in Hong Kong and Yang TieCheng and Lan