China Telecom to buy companies from its parent

The Hong Kong-listed arm of China Telecom, the nation's leading fixed-line operator, announced Friday that it will buy three telecommunications companies from its state-owned parent for US$184.9 million. The cash sale, news of which was filed with the Hong Kong Stock Exchange, is part of the telecom giant's plans to expand both domestic and overseas operations, the Wall Street Journal reported. The companies that will be sold are Asian-focused China Telecom (Hong Kong) International, China Telecom (USA) and China Telecom System Integration. "The company expects to exploit technological advantages and increase economies of scale benefits through acquisition of the three companies by reducing operational costs, consolidating business resources, and improving [its] network and services system," China Telecom said in the statement. China Telecom is 70.89%-owned by its parent, China Telecommunications Corp.