China Communication Services mulls share sale for HK$1.89 bln

China Communication Services Co Ltd<552>, the nation's largest builder of phone networks, plans to raise about RMB 1.67 billion to replenish operating capital through a share sale, sources reported.

The phone-network supplier will put up 326.7 million new shares and 32.7 million shares held by China's National Council for the Social Security Fund for sale at HK$5.25 apiece, said the company in a filing with the Hong Kong Stock Exchange.

The raised fund will be mainly used in further research and development of telecom-related design, construction and maintaining business, network deployment of homegrown 3G wireless standard TD-SCDMA, as well as helping finance acquisitions, according to the statement.

It also plans to buy out China Telecoms Construction Co Ltd, in a bid to position itself the only giant in China's telecom infrastructure construction sector.

The company's shares closed at HK$5.29 on Monday.