Freshfields Bruckhaus Deringer (‘Freshfields’) has advised China Unicom (Hong Kong) Ltd. on the issue of up to 6.65 billion new shares to its parent company, China Unicom (BVI) Ltd. for an aggregate subscription price of up to US$11.3 bn  (HK$88.06bn).

The transaction is part of the mixed ownership reform plan being implemented by China United Network Communications Group Co. Ltd. and is the first transaction under China’s mixed ownership reform of state-owned enterprises.

The proceeds from the share issue will be used to upgrade China Unicom’s 4G network, develop and launch the technology for its 5G network, develop other innovative businesses and repay bank loans.

The Freshfields team advising on the deal was led by partner Grace Huang.