CK Hutchison to exit VodafoneThree stake in $45.5b cash deal

The sale triggers a $4.7b expected gain for the group. 

CK Hutchison said it will dispose of its 49% stake in UK telecoms joint venture VodafoneThree for $45.8b (GBP4.3b) in cash, according to a disclosure.

In a 5 May disclosure, the stake, held through Hutchison, will be cancelled under a framework agreement entered into with Vodafone, VodafoneThree, Vodafone TopCo, and related entities. VodafoneThree is currently owned 51% by Vodafone and 49% by Hutchison.

Under the agreement, Vodafone will inject pre-completion funding into VodafoneThree before the cancellation takes effect. The cancellation will be settled in cash by VodafoneThree to Hutchison upon completion.

The consideration was determined through arm’s length negotiations, taking into account VodafoneThree’s business performance, contractual arrangements between shareholders, and related option structures.

CK Hutchison said the transaction is expected to be treated as a deemed disposal under accounting standards, as its ownership interest will be reduced to zero and it will cease to have significant influence over VodafoneThree.

The group expects to recognise an estimated gain of about $4.7b, subject to final carrying values, transaction costs, and exchange rates at completion.

VodafoneThree is a mobile network operator formed following the merger of Vodafone’s and Hutchison’s UK telecom operations completed in May 2025 and serves more than 28 million customers in the United Kingdom.

The company reported a net asset value of $15.67b (GBP1.47 billion) as at March 31, 2025, and a loss of $1.4b (GBP131m) before tax for the financial year ended March 2025, according to audited accounts cited in the filing.

Hutchison said proceeds from the transaction will be used for general corporate purposes, including debt reduction, infrastructure investment, and potential acquisitions, as well as working capital needs.

The deal is subject to regulatory and contractual conditions, including approvals under the UK National Security and Investment Act and other closing requirements.