China Unicom: the establishment of a new joint venture with Tencent Venture Capital will help to magnify the advantages of both sides in the long run

CTOnews.com news on November 2, this evening, China Unicom issued a notice on media coverage, noting that some media reported that the operator of the new joint venture between the company's subsidiary Unicom Innovation Venture Capital Co., Ltd. (referred to as "Unicom Venture Capital") and Shenzhen Tencent Industrial Venture Capital Co., Ltd. (referred to as "Tencent Venture Capital") was unconditionally approved by the State Administration of Market Supervision and Administration.

China Unicom said that based on the strategic needs of the company to fully advance into the digital economy, its subsidiary Unicom Venture Capital plans to set up a new joint venture with Tencent Venture Capital, mainly engaged in content distribution network (CDN) and edge computing business, based on independent research and development, to form a complete CDN / MEC platform capability, operation capability and product innovation capability. The above-mentioned application for approval of operator concentration was announced on the website of the State Administration of Market Supervision and Administration on October 27, 2022. The establishment of the joint venture is in the process of being promoted, and the establishment registration has not yet been completed, which has no significant impact on the current production and operation of the company. in the long run, it will help to enlarge the advantages of both sides and strengthen the CDN and marginal computing industry chain.

China Unicom pointed out in the announcement that Tencent is one of the company's long-term strategic investors. This matter is the normal business cooperation between the company and Tencent, which involves that the amount of investment does not meet the standards that should be disclosed by companies that should be disclosed in the Stock listing rules of the Shanghai Stock Exchange.

CTOnews.com learned that the joint venture intends to mainly engage in content distribution network (CDN) and edge computing business. After the completion of the transaction, Unicom Venture Capital, Tencent Industrial Capital and the relevant employee shareholding platform will hold 48%, 42% and 10% of the joint venture respectively, and Unicom Venture Capital and Tencent Industrial Capital will jointly control the joint venture.

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