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CK Hutchison exits UK’s largest mobile operator VodafoneThree in US$5.82 billion deal

Sale of 49 per cent stake marks CK Hutchison’s latest asset move, following disposal of UK Power Networks, as group builds cash war chest

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Hong Kong-listed conglomerate CK Hutchison has agreed to exit its 49 per cent stake in the UK’s largest mobile operator VodafoneThree. Photo: CK Hutchison
Peggy Ye
CK Hutchison Holdings said on Tuesday it has agreed to exit its 49 per cent stake in UK mobile operator VodafoneThree in a £4.3 billion (US$5.82 billion) deal that will see it fully divest from the country’s largest carrier by subscribers.

The announcement, made after the morning trading session in Hong Kong, lifted its shares by 4.13 per cent to close at HK$68, after rising to an intraday high of HK$68.45 from an opening price of HK$64.60.

The transaction would allow the Hong Kong-listed conglomerate to unlock value from a business with more than 28 million customers in the United Kingdom, according to a filing to the Hong Kong stock exchange. The stake is held through its telecoms unit, CK Hutchison Group Telecom Holdings.

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CK Hutchison Holdings said the exit would enable it to “monetise its investment at an attractive valuation”, with proceeds going towards strengthening its financial position, funding expansion and improving liquidity.

The disposal follows a broader series of asset sales by the CK group. In February, it sold its UK electricity infrastructure operator, UK Power Networks, to a French operator for over US$14 billion.
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The company entered into a framework agreement in Hong Kong on Tuesday with Vodafone Group and related parties to cancel its shares in VodafoneThree, a joint venture currently owned 51 per cent by Vodafone and 49 per cent by CK Hutchison.
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