Li Ka-shing’s Hutchison still eyes British mobile network expansion amid Brexit uncertainty

CK Hutchison Holdings, the flagship conglomerate of Li Ka-shing, still has its sights set on expanding telecommunications network operations in Britain despite the fallout over the country’s vote to leave the European Union.

The Hong Kong-listed company’s proposed takeover of mobile network operator O2 was rejected by the European Commission last month, more than a year after it agreed to buy the British firm for £10.25 billion (HK$108.59 billion) from Spanish owner Telefonica.

“We are still considering a number of options,” a Hutchison spokesman told the South China Morning Post on Monday without elaborating.

Hutchison, with its business largely exposed to Britain, saw its shares fall to HK$80.60 in early trading on Tuesday, its lowest level since February last year. It finished the day at HK$82, down 1.80 per cent.

Telefonica is reported to be considering a delay of a possible initial public offering of O2 because of the post-referendum market volatility, which has seen a sharp decline of the British pound.

Hutchison said in May that it would “study the commission’s decision in detail” and consider options that include “the possibility of a legal challenge”.

The commission blocked the O2 acquisition based on strong concerns that Britain’s mobile customers would have had less choice and paid higher prices as a result of the takeover.