Hutchison to sell stake in UK mobile unit

Hutchison to sell stake in UK mobile unit

Hutchison Whampoa is to sell a one third stake in its British mobile phone business, Three, for $4.3 billion, Reuters reports.

The Hong Kong-based company will allegedly sell the stake to five investors in a bid to help fund its acquisition of Telefonica’s mobile arm, O2.

Hutchison plans to merge O2 with its own UK subsidiary to create the top mobile operator in the country.

The investors include Singapore sovereign welfare fund GIC, the Abu Dhabi Investment Authority, the Canada Pension Plan Investment Board, Brazilian investment bank BTG Pactual and the pension fund of Quebec, Caisse de depot et placement du Quebec.

In a statement, GIC confirmed that it would be investing $1.1 billion in Three, but did not disclose the amount to be invested by the remaining parties.

“[The investment] is conditional on, and will occur concurrently with, the completion of Three UK’s acquisition of O2 UK and the combination of both businesses, which are subject to EU regulatory approvals,” GIC said.

Hutchison’s shares were up 2.1% in early morning trade today. 

Gift this article