Hong Kong, June 5, 2006 -- China Netcom Group Corporation (Hong Kong) Limited ("China Netcom" or the "Company") (HKSE:0906; NYSE:CN) announced that it has entered into definitive agreement with Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Limited (collectively, "Investor Group") under which China Netcom agrees to sell 100% of the equity interest in Asia Netcom Corporation Limited ("Asia Netcom", an indirect wholly-owned subsidiary of China Netcom) to the Investor Group for the consideration of USD 168.84 million.
China Netcom''s Board of Directors has approved this transaction. The completion of the transaction is subject to relevant governmental approvals and other customary closing conditions.
Asia Netcom, headquartered in Hong Kong, provides submarine cable capacity, international data and voice services to multinational corporation and telecom carrier customers mainly in the Pan Asia-Pacific region.
Mr. Zhang Chunjiang, Chairman of China Netcom said, "After the disposal of Asia Netcom, China Netcom 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. Both parties will cooperate in good faith to explore potential future business partnerships and opportunities."
A group led by China Netcom acquired Asia Global Crossing and its EAC network assets in the end of 2002 with a deal of $270 million. After the acquisition and restructure, Asia Global Crossing was branded Asia Netcom, a subsidiary of China Netcom.