On Nov 29th, 2017, CICC has successfully acted as Sole Sponsor, Sole Underwriter, and Sole Financial Advisor to assist China United Network Communications Limited (“China Unicom”, “Unicom A Share Company”, or the “Company”) (600050.SH) in completing the A-share non-public issuance and red chip placement of its mixed-ownership reform.

China Unicom is the first SOE undergoing an overall reform throughout the group company among this round of pilot organizations for the mixed-ownership reform, setting a significant model example for other pilot SOEs

The equity financing of the mixed-ownership reform includes: RMB61.7 Bn non-public offering by Unicom A-share Company, ranking the largest A-share equity refinancing and the 4th largest A-share equity financing in history; RMB13.0 Bn worth of the Company shares transferred by China Unicom Group; RMB 3.2 Bn worth of restricted stocks to be granted to nearly 8,000 employees

The RMB75.0 Bn share placement by China Unicom (Hong Kong) Limited is the largest refinancing for a Chinese HKSE listed company and the 4th largest equity financing for HKSE listed companies in history

Through integrated planning on the mixed-ownership reform plan, Unicom A Share Company actively introduces China Life, Tencent, Baidu, JD, Alibaba, Suning, Kuangchi, DiDi, Wangsu, Yonyou, Eastone Century, CRRC, Qianhai FOF, and China Structural Reform Fund，which are industry leaders with strategic synergy with the Company, by non-public offering and transferring of existing shares. Unicom A Share Company reduces the state-owned shareholding in the Company as so to implement the Mixed Ownership Reform Plan. In addition, through implementing the mixed-ownership reform, Unicom A Share Company expects to further optimize its corporate governance in accordance with the market-oriented principles, focus on the development of its principal businesses, establish the business model to further develop innovative businesses, so as to improve and enhance its overall efficiency and competiveness and to achieve its strategic goals.

As the strategic partner, CICC assisted China Unicom in pilot plan discussions starting from 2016. During the whole process, CICC provides full supports on designing the overall deal structure with both onshore and offshore transactions, the corporate governance arrangement, and the restricted stocks incentive plan, and on selecting investors, assisting negotiations, communicating with related state departments and commissions and information disclosure of the Company. CICC plays a crucial role in ensuring the success of the mixed-ownership reform plan and gains China Unicom’s appreciation. The successful completion of the transaction fully demonstrates CICC’s superior capabilities in executing SOE reforms and complicated deals. As the top investment bank with “Chinese Roots, International Reach”, CICC will continue making every effort to reach a new height, dedicating to the reform of Chinese state-owned enterprises.