Chinese language Internet search provider Baidu-led investor consortium will invest RMB7 billion in China Unicom for 35.2 percent stake.

In connection with the investment, Baidu has entered into a business co-operation agreement with China Unicom. The investment is part of China Unicom’s mixed-ownership reform pilot-run plan.

Unicom OpCo will apply the proceeds raised by mixed-ownership reform to enhance 4G capability, conduct 5G technical network trials and related business functions, build pre-commercial trial networks, and invest in innovative businesses.

China Life Insurance, Shenzhen Tencent Cinda, Ningbo Meishan Free Trade Port Area Baidu Peng Huan Investment, Suqian Jingdong Sanhong Management, Hangzhou Ali Venture Capital, Suning Commerce Group, Shenzhen Kuangchi Connection Technology Investment, Shenzhen Huaihai Ark IT Investment Fund are the strategic investors of China Unicom.

Strategic investors will subscribe for about 9 billion new shares of Unicom A Share Company and purchase 1.90 billion shares of Unicom A Share Company from Unicom Group, representing in aggregate 35.2 percent of Unicom A Share Company’s enlarged share capital, at a price RMB 6.83 per share.

China Unicom proposes to grant to key employees about 850 million restrictive shares of Unicom A Share Company at a price of RMB 3.79 per share for a total consideration will be about RMB 78 billion.