Besttone Holding’s Material Assets Reorganization of China Telecom’s Internet Segment successfully closed in March 2017. The total transaction value is RMB 3.934 Bn. CICC played an important role in the transaction as Sole Financial Advisor.

The transaction is the first reorganization and listing of internet assets by an SOE on the A-share market, the largest material asset reorganization by a central SOE in the TMT industry since 2012, and a first mover in the new round of SOE mixed ownership reform. It has also created the first listing conglomerate on China’s capital market with business lines in culture, travel and entertainment to leverage the capital market to better resource allocation and deepen the business integration of Besttone Holding. Meanwhile, it is the largest M&A deal for China Telecom in the past five years, representing the capital market debut of innovative businesses under China Telecom, which deepens the SOE reform and strengthens the SOE influence in the internet industry.

The deal represents CICC’s another milestone transaction for China Telecom following its acquisition of CDMA network. In the deal process, CICC successfully tailored the reorganization proposal, delivered efficient execution and accurate analysis, which was highly recognized by the client senior management.