China’s government has tapped 14 strategic investors to shake up the ownership structure of China United Network Communications, the Shanghai-based holding company of Hong Kong-traded China Unicom. The government will sell a 35.2% stake for about CNY78 billion to a consortium of private-sector investors, according to Unicom Chairman and Chief Executive Wang Xiaochu. The transaction is scheduled to close by the end of this year. The transaction marks the first case of the Chinese government’s so-called mixed-ownership program, which aims to introduce private-sector vigor and expertise, fresh capital and innovation to the country’s state-owned enterprises (SOEs). The consortium of investors include Alibaba Group Holding, Baidu, Tencent Holdings and JD.com. Unicom plans to collaborate with those four companies in areas that include etail, payment and internet finance, content aggregation, big data and the Internet of Things (IoT). The other investors include retailer Suning Holdings, diversified technology conglomerate Kuang-Chi Group, ride-sharing market leader Didi Chuxing, data center services provider Wangsu Science & Technology, business software provider Yonyou, China Life Insurance, railway rolling stock manufacturer CRRC Corp and the Qianhai Fund of Funds. “Unicom will be able to leverage the strength of each strategic investor to further develop its business,” Jefferies Equity Analyst Edison Lee said. The proceeds of the investment will be used to enhance Unicom’s 4G mobile capability, conduct 5G technical trials, build test networks, and invest in innovative businesses, the South China Morning Post reports. The ownership shakeup comes on the heels of a 68.9% jump in Unicom’s first-half net profit to CNY2.4 billion, as the company effectively cut its operating expenses.