CK Hutchison Considers London and Hong Kong Listings for Telecom Assets

• CK Hutchison is eyeing London as the primary listing venue and Hong Kong as secondary, with the telco unit expected to fast-track into the FTSE100 index
• The spin-off follows regulatory approval of a $19 billion tie-up between CK Hutchison's UK telecom assets and Vodafone
• Potential merger talks involving Italian unit Wind Tre and French telecom group Iliad could pause the listing plans, with a decision expected in coming weeks

CK Hutchison Considers London and Hong Kong Listings for Telecom Assets

Hong Kong conglomerate CK Hutchison Holdings is planning a dual listing of its global telecommunications business in London and Hong Kong as early as Q3, according to sources. The telecom assets could be valued at approximately $20 billion.

Key Transaction Details:

• London would serve as the primary listing venue, with Hong Kong as secondary
• The telecom unit includes operations across Europe, Hong Kong, and Southeast Asia
• Goldman Sachs, Citigroup, and Deutsche Bank are advising on the spin-off
• The listing would fast-track the unit's inclusion in London's FTSE100 index

Background:

CK Hutchison, founded by billionaire Li Ka-shing, began preparations for the telecom spin-off early last year after securing regulatory approvals for a $19 billion merger of its UK assets with Vodafone. The move aligns with the company's strategy to enhance shareholder returns.

Potential Complications:

A possible deal to merge the company's Italian telecom unit Wind Tre with French telecoms group Iliad's Italian operations could pause the spin-off plans. Sources indicate differing internal views on strategy, with a decision expected in the coming weeks.

Market Context:

The listing timeline remains fluid and subject to change. CK Hutchison has been actively restructuring its portfolio, though some asset sales have progressed slowly due to complex regulatory clearances and requirements for Chinese investor participation in certain buyer groups.

All parties involved—CK Hutchison, Goldman Sachs, Citigroup, and Deutsche Bank—declined to comment on the matter.