Media365
CK Hutchison Holdings said on Tuesday it had 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 mobile network by subscribers.
The transaction will allow the Hong Kong-listed conglomerate to monetise its investment in 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 (CKHGT).
In the statement, CK Hutchison Holdings said the exit would allow it to “monetise its investment at an attractive valuation”, with proceeds used to strengthen its financial position, fund expansion and improve liquidity.
The company entered into a framework agreement after the morning trading session in Hong Kong on Tuesday with Vodafone Group Plc 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.
Under the agreement, Vodafone will provide pre-completion funding to VodafoneThree, which will in turn pay CK Hutchison in cash upon completion as its shares are cancelled.
