Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Vodafone, CK Hutchison set to unveil UK mobile tie-up soon - sources

Published 04/05/2023, 05:12
Updated 04/05/2023, 08:32
© Reuters. FILE PHOTO: A branded sign is displayed on a Vodafone store in London, Britain May 16, 2017. REUTERS/Neil Hall/File Photo
VOD
-
CKHUY
-

(Reuters) -Vodafone and CK Hutchison are close to agreeing a merger of their UK telecoms businesses, two sources said, in an expected 15 billion pounds ($19 billion) deal that would create the country's biggest mobile operator.

The deal would value the equity of the combined group at about 9 billion pounds, with roughly 6 billion pounds of debt, the Financial Times reported. The valuation is roughly in line with peers.

Negotiations, which have been protracted, are expected to be completed this month, one of the sources familiar with the matter said. The second source said an announcement could come "very soon".

Hutchison is scheduled to update on first quarter trading on May 9, while Vodafone (LON:VOD) publishes it full-year results on May 16.

The tie-up - with a planned ownership split of 51% Vodafone and 49% Hutchison, the Hong-Kong telecoms-to-ports conglomerate part-owned by billionaire Li Ka-shing - is likely to face intense regulatory scrutiny.

CK Hutchison's senior leadership met British government officials in March to seek political support for the deal, three sources told Reuters last month.

Hutchison's co-managing director Canning Fok also met Vodafone's interim Chief Executive Margherita della Valle, who has since been appointed permanently to the role, two of those sources said.

The combination could also enable Hong Kong-based CK Hutchison to withdraw from the UK telecoms market, the Financial Times said on Thursday. However, it added that no agreement had been finalised and circumstances might still change.

© Reuters. FILE PHOTO: A branded sign is displayed on a Vodafone store in London, Britain May 16, 2017. REUTERS/Neil Hall/File Photo

Vodafone and CK Hutchison did not immediately respond to Reuters' request for comment.

($1 = 0.7948 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.