SK Telecom has sold back its 3.8 percent stake in China Unicom for US$1.3 billion as part of a significant shift in strategy for the South Korean firm in China. In a statement, SK said that it would use the proceeds from the stake – which it acquired in 2006 – to strengthen its financial base and pursue other partnership opportunities in China, including maintaining an alliance with Unicom. However, reports suggest that the sale highlighted SK Telecom's failure to make a significant profit from its venture and may have been prompted by the deepening relationship between Unicom and Spain's Telefonica. A deal struck between the two operators earlier this month saw Telefonica increase its stake in Unicom from 5.38 percent to approximately 8 percent, making it the largest single investor in the Chinese number two operator. The sale of SK shares is expected to be completed in mid-November after the approval from independent shareholders of China Unicom.