Exclusive: CK Hutchison weighs London, Hong Kong listing of global telco assets, sources say
Item 1 of 2 A Chinese national flag flutters in the wind with the Cheung Kong Center building and CK Hutchison logo in the background in Hong Kong, China, April 1, 2025. REUTERS/Tyrone Siu
[1/2]A Chinese national flag flutters in the wind with the Cheung Kong Center building and CK Hutchison logo in the background in Hong Kong, China, April 1, 2025. REUTERS/Tyrone Siu Purchase Licensing Rights, opens new tab
CK Hutchison plans dual listing in London and Hong Kong, sources say
Telecom assets could be valued at $20 billion, sources say
Goldman Sachs, Citigroup, Deutsche Bank involved in spin-off, sources say
Italy talks could pause listing plans, sources say
HONG KONG/DUBAI/MILAN, Jan 20 (Reuters) – Hong Kong conglomerate CK Hutchison Holdings (0001.HK), opens new tab is weighing listing its global telecommunications business in London and Hong Kong as early as the third quarter after spinning it off from the group, two sources with direct knowledge of the matter said.
The company started preparations for the telco spin-off early last year after clearing all regulatory approvals for a $19 billion tie-up of its UK assets with Vodafone, Reuters reported at the time.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, is eyeing London as a primary listing venue and Hong Kong as a secondary venue for its telecoms businesses in Europe, Hong Kong and Southeast Asia that could be valued at around $20 billion, said the people.
CK Hutchison declined to comment.
The telco unit would be on the fast track to be included in London’s FTSE100 index, said one of the people.
However, a potential deal the company has also been exploring to merge its Italian telecom unit Wind Tre with the Italian operations of French telecoms group Iliad, reported by Reuters in October, could pause the spin-off, a third and fourth person said.
There are different views within the company about what direction to take, they said, with the third person adding that a decision could be made in the coming weeks.
Goldman Sachs, Citigroup and Deutsche Bank are working with CK Hutchison on the spin-off listing, two of the sources said, cautioning however that plans are still fluid and the listing time could change.
The four sources spoke on condition of anonymity because the matter is private.
Goldman Sachs, Deutsche Bank and Citi also declined to comment.
CK Hutchison has been focusing on enhancing the group’s returns. Last year it announced a deal to sell most of its global ports business, including assets near the Panama Canal, for an equity value of $22.8 billion to a BlackRock-led consortium.
The sale however has been progressing slowly due to complex regulatory clearance and China’s request to include a Chinese investor in the buyer group.
Reporting by Kane Wu in Hong Kong, Hadeel Al Sayegh in Dubai, and Amy-Jo Crowley in London and Elvira Pollina in Milan. Editing by Anousha Sakoui and Jan Harvey
Kane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region’s most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia’s loan market for Thomson Reuters Basis Point. She is based in Hong Kong.
