China Unicom buys fixed-line assets from parent

HONG KONG Wed Nov 21, 2012 6:38am EST

HONG KONG Nov 21 (Reuters) - China Unicom, the country's No.2 mobile operator, said on Wednesday it would pay 12.2 billion yuan ($2 billion) to its parent company for the fixed-line assets in 21 southern Chinese cities and provinces.

The mobile operator said it was buying the assets because the depreciation costs incurred would be lower than the leasing fees it would have to pay its parent company, China Unicom said in a statement to the Hong Kong bourse.

The assets are currently held by a company called Unicom New Horizon, which is a wholly-owned subsidiary of the Unicom Group, which is also China Unicom's parent.

For the statement, please click: here (Reporting by Kelvin Soh)