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Hutchison to sell one-third stake in UK mobile business for $4.3 billion

Staff writer |
Hutchison Whampoa plans to sell a one-third stake in its British mobile phone business for $4.3 billion to five investors.

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The move that will help Hutchison fund its acquisition in Europe. Hutchison agreed in January to buy Telefonica's British mobile unit O2 for nearly $15.4 billion and merge it with its UK subsidiary to create the top mobile operator in the country.

Singapore's GIC and the Canada Pension Plan Investment Board both said they will each give 1.1 billion pounds ($1.7 billion) for the deal.

The other investors are the Abu Dhabi Investment Authority, Brazilian investment bank Grupo BTG Pactual, and Caisse de depot et placement du Quebec, which manages public and private sector pension funds and insurance funds, Hutchison said in a securities filing. Their investments were not disclosed.

The deal value could grow by nearly $500 million if the O2 mobile phone business meets performance targets, Hutchison added.

The Hong Kong conglomerate took on a 6 billion pound bank loan to finance the purchase of the O2 UK business and said it was talking with private equity firms and other investors for a minority stake in the business.


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