CK Hutchison Holdings (“CK Hutchison”) has today announced that its wholly-owned subsidiary, CK Hutchison Group Telecom Holdings Limited (“CKHGT”) has agreed to a buy out of its shares in VodafoneThree, the UK mobile telecommunications business 51% owned by Vodafone Group Plc and 49% by CKHGT.
The transaction is subject to regulatory approvals. It will allow the CK Hutchinson to monetise its investment at an attractive valuation, receiving £4.3 billion (HK$45.494 billion) for cancellation of its shares in VodafoneThree.
Canning Fok, Deputy Chairman of CK Hutchison and Executive Chairman of CK Hutchison Group Telecom Holdings, has commented:
“Our Group was one of the first in the world to invest in 3G mobile telecommunications with the establishment of 3UK in 2000 and introduce ground-breaking mobile broadband telephony to consumers. The company has grown from a start-up mobile operator, and through merging and forming the present VodafoneThree, has become the number one operator in the UK by subscriber numbers and a market leader in the delivery of telecommunications products and services to UK consumers. The present transaction now allows us to realise the value of our investment in VodafoneThree for the benefit of the Group and our shareholders.”
In a released shared commentary:
“This transaction is a win-win for the Group and for our partners. It generates substantial cash proceeds to the Group and crystallises solid value for the Group from our investment,” said Frank Sixt and Dominic Lai, CK Hutchison Group Co-Managing Directors.
This article contains forward-looking statements, and caution should be exercised when relying on such information that may or may not occur in the future.
