Owner of Three UK Considers Spinning Off Global Telecommunications Biz
The Hong Kong conglomerate behind mobile operator Three UK and several other operators in different countries, CK Hutchison Holdings (CKH), has confirmed that they’re currently engaged in talks that could see them spinning off their global telecommunications network in the near future. But an agreement is not yet certain.
At present CKH operates both mobile and fixed telecommunications (broadband and phone) networks in over ten global markets, including the Three brand in the UK (Three UK), Austria, Denmark, Ireland and Sweden, and under its namesake brand in Hong Kong, Macau, Indonesia, Sri Lanka and Vietnam.
According to Reuters, Hong Kong tycoon Li Ka-shing, who founded CKH, has reportedly already begun preparations to spin off CKH’s global telecommunication assets and list the business – valued at around £10bn to £15bn – in London. The new entity would host CKH’s telecoms businesses in Europe, Hong Kong and Southeast Asia.
Advertisement
The listing could reportedly be ready this year, but nothing is currently certain. In addition, CKH wouldn’t be able to make much progress on this until after the full finalisation of the recently approved merger between Vodafone and Three UK (here), which could make it difficult to proceed with a listing in 2025. CKH initially declined to comment on this news, but has today confirmed the following.
Statement by CKH
TELECOMMUNICATION ASSETS
INSIDE INFORMATION
This announcement is made by the board of directors (the “Board”) of CK Hutchison Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).
The Board has noted certain reports in the media recently relating to a potential spin-off of the Company’s global telecommunication assets and businesses.
From time to time, the Group receives proposals and explores and evaluates opportunities that may be available, with a view to enhancing long term value to shareholders, including possible transactions relating to the assets and operations of the Company’s global telecommunication businesses (including a spin-off listing). As at the date of this announcement, the Board has not made any decision to proceed with any transaction related to the Company’s global telecommunication businesses. Shareholders and potential investors in the Company should note that there is no certainty that any transaction will or will not take place.
If required, the Company will make further announcement(s) in accordance with applicable laws and regulations. Shareholders and potential investors in the Company should exercise caution when dealing in the shares and/or other securities of the Company.
By Order of the Board
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
« G.Network Ponders Sale of London Full Fibre Broadband Network Again
Gigabit Broadband Voucher Scheme Expanded to UK Urban Areas »
Advertisement
Leave a Reply
Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your entries for comment content, display name, IP and email in our database, for as long as the post remains live.
Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.
This was always going to happen.
Can you explain why please?
I am not disagreeing with you, I would just like to know the rationale for CHK divesting itself of the whole of its telecoms (i.e. mobile, fixed-line & broadband) business in one go.
If they do, what would be their core business sector(s) going forward?
Unfortunately, my pension doesn’t run to paying for an FT pay-wall subscription!
T.I.A.
Considering it is a Chinese company it might be banned like Huawei was.
CK Hutchison and Hauwei are both Chinese-owned but have very different backgrounds. The latter was established by a former PLA general and is a close follower of China’s Communist Party doctrine. The former is an old Hong established from scratch by a refugee from one of the minorities in China to escape the war in China and who was greatly respected in old Hong Kong and by the British establishment.
CK Hutchison Holdings is also trying to sell its ports and terminals operations despite Chinese government intervention. There is more to this story than has surfaced so far.
I’ve heard that most of the group’s investment is outside of Hong Kong these days and that the company has been divesting from Chinese assets
I dont get it, how can you list your comms business /assets when youve already sold out to vodafone?
#billionairesworld