Clifford Chance advises Telefónica on Strategic Alliance

Hong Kong: 9 September 2009 – Leading international law firm Clifford Chance has advised Telefónica on a strategic alliance with China Unicom, which will see the two companies develop a combined customer base of over 550 million people.

In addition to the terms of the strategic alliance, the firm also advised Telefónica on a mutual investment agreement with China Unicom.

Under the terms of the agreement, each company will invest the equivalent of US$1 billion in the other party through the acquisition of each party’s shares. After the completion of the transaction, Telefónica’s shareholding in China Unicom will increase to approximately 8 per cent from 5.38 per cent and China Unicom’s shareholding in Telefónica will be approximately 0.89 per cent.

“We are delighted to have advised Telefónica on such an important development in its global business,” said partner Cherry Chan, who led the Clifford Chance team advising Telefónica.

“This is the third major agreement with China Unicom on which we have advised Telefónica, and this complex deal continues the development of Telefónica ‘s overall business strategy in China.”

Cherry led the team advising Telefónica, assisted by senior associate, Clarice Yue and associates Alan Xu, Derek Hung and Bryan Koo.

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