Fixed-line operator China Netcom has agreed to sell its Asia Netcom unit to an investor group for $169 million.
Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund are buying 100% of the equity interest in the subsidiary, which is based in Hong Kong, China Netcom said.
China Netcom's board of directors has approved the transaction, the carrier said.
The completion of the transaction is subject to relevant governmental approvals and other customary closing conditions.
According to the company, after the disposal of Asia Netcom it will maintain its business relationship with Asia Netcom for its international operations.
This business relationship will include the purchase of capacity by China Netcom from Asia Netcom.
In addition both parties will cooperate in good faith to explore potential future business partnerships and opportunities, the company said.