Mobile phone operator China Resources Peoples Telephone Co Ltd said on October 05 that its controlling shareholder and an executive director were in talks to sell control of the company to China Mobile (Hong Kong) Ltd.
China Resources Peoples Telephone said its China state-owned controlling shareholder, China Resources (Holdings) Co Ltd, executive director Michael Leung and Onwel Capital Co Ltd had entered into non-binding memorandum of understanding with China Mobile for a possible sale of their shareholdings in the company.
"The Board understands that discussions are at a preliminary stage and no binding terms have been agreed. It is not possible to give any assurances that CM will make a voluntary offer for the company," the mobile phone operator said in a statement. China Resources (Holdings) currently holds 48 percent of the mobile phone operator, while Leung and Onwel hold an aggregate 18.54 percent of the company.
If an offer is made, China Mobile intends to make a voluntary conditional general offer for all outstanding shares at HK$4.55 a share in cash, the company said.
Other than employee share options, the company said it has issued a total of 743.64 million shares.