CK Hutchison exits VodafoneThree in US$5.8bil deal with Vodafone


CK Hutchison will sell its 49% stake in UK mobile operator VodafoneThree to partner Vodafone for 4.3 billion pounds ($5.81 billion), the Hong Kong conglomerate said on Tuesday.

VodafoneThree is currently owned 51% by Vodafone Group and 49% by CK Hutchison Group Telecom Holdings, which will sell the stake.

Shares of CK Hutchison were up more than 4%, clocking their highest in more than six years.

CK Hutchison said the deal would allow it to monetise its investment at an attractive valuation and generate substantial cash proceeds for the group. The transaction is subject to regulatory approvals.

VodafoneThree, formed from the merger in early 2023 through a deal between Vodafone UK and Three UK - with CK being the parent company of the latter. The three had completed the VodafoneThree merger in May 2025.

The deal follows ongoing regulatory and legal scrutiny facing Britain’s mobile operators, even after consolidation in the sector, with providers including Vodafone, BT's EE, Telefonica's O2 and Three UK accused of overcharging customers through so-called "loyalty penalties".

CK Hutchison continues to operate telecom businesses in Italy, Sweden, Denmark, Austria and Ireland, according to its website.

It also holds a controlling stake in Hutchison Telecommunications Hong Kong Holdings, which provides mobile services in Hong Kong and Macau.

The conglomerate, controlled by Hong Kong billionaire Li Ka-shing, has separately been involved in a diplomatic back-and-forth after U.S. President Donald Trump objected to Chinese ownership of ports along the strategically important Panama Canal.

Vodafone said in a separate statement that it was the "right time" to take full ownership of VodafoneThree, adding that it was eyeing 700 million pounds in annual cost and capital expenditure savings by fiscal 2030.

Max Taylor will continue as chief executive of VodafoneThree, supported by the existing leadership team, UK-based mobile and broadband operator Vodafone said in a statement. Vodafone added that the deal was subject to UK National Security and Investment Act approval and is expected to complete in the second half of 2026. - Reuters

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