State-owned China Unicom unveils $11.7 billion of strategic investment

China’s third-largest mobile operator has unveiled the details of its ‘mixed ownership reform’, involving a bunch of new ‘strategic investment’.

The move is part of a broader initiative by the Chinese government to introduce private investment into state-owned enterprises. Hong Kong listed China Unicom has offered more than half of the majority stake still state-owned to strategic investors, which comprise a roll-call of major Chinese tech companies and investment funds.

Leading the way are internet giants Tencent, Baidu, JD.com and Alibaba. China Unicom is also doshing out shares to ‘key employees’, which presumably means top execs. The total consideration of the mixed ownership reform is RMB 78 billion, which is equivalent to $11.7 billion.

Trading in its shares was suspended in anticipation of the announcement and the company had recently announced a dramatic increase in profits fueled entirely by cost-cutting. Most of the English-language investor presentation is a montage of aspirational corporate buzzwords, but here are the most informative slides. It also identified one of the non-exec directors as Law Fan Chiu Fun Fanny (far right, above).