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Reuters: CK Hutchison Exploring Options For European Telco Ops

COMMUNICATIONS


  • At first glance this looks to be neutral for CKHGTH (the telco entity) given it’s a separate credit pool to the conglomerate and the bonds don’t appear to have CoC clauses.
  • Any separation would impact earnings for CKHH with telecoms contributing ~20% of the conglomerate’s revenue and ~25% of its EBITDA IN FY23.
  • Spreads on both tickers look broadly muted.

  • RTRS reports that CK Hutchison is considering options for its European telecom operation, including spin-off with a view to IPO (as per three sources), bloc sale (as per one source), or country-by-country sales of controlling stakes (as per one source).
  • Reportedly exploring deals in Italy (revival of an aborted spin-off of mobile/fixed network), Denmark and Sweden (both by mergers with third parties) but no negotiations have resulted in deals yet.
  • IPO seen as difficult in current market as per one source.
  • Deliberations cautions as being at an early stage; sources indicate they will wait for the outcome of the CMA’s probe into the Three-Vodafone merger in the UK before taking action.
  • https://www.reuters.com/markets/deals/ck-hutchison-reviews-options-european-telco-assets-sources-say-2024-07-10/
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  • At first glance this looks to be neutral for CKHGTH (the telco entity) given it’s a separate credit pool to the conglomerate and the bonds don’t appear to have CoC clauses.
  • Any separation would impact earnings for CKHH with telecoms contributing ~20% of the conglomerate’s revenue and ~25% of its EBITDA IN FY23.
  • Spreads on both tickers look broadly muted.

  • RTRS reports that CK Hutchison is considering options for its European telecom operation, including spin-off with a view to IPO (as per three sources), bloc sale (as per one source), or country-by-country sales of controlling stakes (as per one source).
  • Reportedly exploring deals in Italy (revival of an aborted spin-off of mobile/fixed network), Denmark and Sweden (both by mergers with third parties) but no negotiations have resulted in deals yet.
  • IPO seen as difficult in current market as per one source.
  • Deliberations cautions as being at an early stage; sources indicate they will wait for the outcome of the CMA’s probe into the Three-Vodafone merger in the UK before taking action.
  • https://www.reuters.com/markets/deals/ck-hutchison-reviews-options-european-telco-assets-sources-say-2024-07-10/