Hutchison Whampoa to divest 33% stake in UK telecoms business

8 May 2015

Hutchison Whampoa is reportedly planning to sell off a 33% stake in its British telecommunications business to a group of investors, according to the Wall Street Journal. It is understood that the Hong Kong-listed conglomerate has outlined plans to divest a third of Hutchison 3G UK Holdings to a number of investors, including: the Canada Pension Plan Investment Board, Abu Dhabi Investment Authority, Caisse de depot et placement du Quebec, Evening Gold Investment Pte, BTG Investments, L.P. and BTG Pactual Global Partnership Investing Fund 1 LP. While it was revealed that the companies would jointly pay GBP2.77 billion (USD4.22 billion) for the stake, it is, however, unconfirmed what proportion of the total will be sold to each aforementioned entity.

Hutchison 3G UK Holdings, the report notes, was created in March 2015 after Hutchison Whampoa struck a deal to acquire the UK’s second largest cellco by subscribers, Telefonica subsidiary O2 UK. As previously reported by CommsUpdate, that month the Hong Kong-based company entered into an agreement with Telefonica to acquire O2 UK for GBP9.25 billion, which will be paid at the closing of the deal, with deferred upside payments of up to another GBP1 billion in the aggregate, with this payable after the cumulative cash flow of the combined businesses of Three and O2 UK reaches an agreed threshold.

United Kingdom, CK Hutchison, Hutchison 3G UK (Three UK), O2 UK