China United Network Communications Group (China Unicom) is considering a proposed spin-off and separate listing of China Unicom Smart Connection Technology Ltd in the mainland China stock exchange.
According to a press release from the Chinese state-owned telecommunications operator of China, the spin-off would be taking place if approved under the rules of the Hong Kong Stock Exchange. To this end, the company will be submitting an application to that exchange as soon as possible.
China Unicom Smart Connection Technology's businesses focus is in the field of internet-equipped vehicles, including smart connection, operation, and application.
"Upon the spin-off and listing, China Unicom Smart Connection Technology, as an independent listed company, can strengthen its financing ability and operational flexibility, better attract talents and strategic partners, enhance its competitiveness, accelerate its business development and improve returns," it said.
China Unicom has a stake of 69.2 percent in the unit. China Unicom would after the transaction remains the company's controlling shareholder. Formed in 2015, Smart Connection Technology finished a mixed-ownership reform in 2019, bringing in strategic investors including FAW Group, Dongfeng Motor, and GAC Group.