By intern reporter Xiao Hua

China Netcom Group Corp. (Hong Kong) Ltd. (HKSE: 00906) delisted from the Hong Kong Stock Exchange October 15, as the company’s merger plan with China Unicom Ltd. (HKSE: 00762) went into effect. The union of the two companies is part of a government-guided effort to reshuffle China’s telecom industry.

China Netcom, a broadband and fixed-line operator that listed in Hong Kong in 1997, announced that the Hong Kong High Court approved its merger with China Unicom on October 14. The plan previously got a nod from China Securities Regulatory Commission on October 8.

Under the terms of the merger, China Netcom will withdraw both its shares from the Hong Kong exchange and its American depository receipts (ADRs) that are listed on the New York Stock Exchange. Thereafter it will be taken over by China Unicom.

Each share of China Netcom will be exchanged for 1.508 shares in China Unicom. China Netcom’s American depository shares (ADSs) will be exchanged for 3.016 ADSs of the new China Unicom.

The company to emerge from the deal will be named China Unicom (Hong Kong) Ltd.

China launched a reshuffle of its telecom industry in June with the goal of creating three telecoms nationwide from the current field of six operators. The October 15 merger is one step in that process.

On October 14, China Netcom announced its revenue for the first three quarters this year was 60.679 billion yuan. At the end of September, the company had 24.86 million broadband subscribers and 107.33 million fixed-line users.

1 yuan = 14 U.S. cents