CK Hutchison will sell its 49-percent 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 percent by Vodafone Group and 49 percent by CK Hutchison Group Telecom Holdings, which will sell the stake.
Shares of CK Hutchison were up more than 4 percent, clocking their highest in more than six years.
VodafoneThree, formed from the merger of Vodafone’s and CK Hutchison’s operations in the United Kingdom, is one of the largest mobile operators in the country by subscriber numbers.
The deal comes a year after the merger, with Vodafone citing progress in integration, improved network quality and stronger customer metrics, including better retention and cross-selling across products such as broadband.
CK Hutchison said the deal would allow it to monetize its investment at an attractive valuation and generate substantial cash proceeds for the group. The transaction is subject to regulatory approvals.
The conglomerate, controlled by Hong Kong billionaire Li Ka-shing, has separately been involved in a diplomatic back-and-forth after United States 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.
