On May 5, CKH HOLDINGS (00001.HK) announced that its wholly-owned subsidiary, CKHGTH, through its fully-owned entity Hutchison, will sell and cancel its 49% equity interest in the UK telecommunications business VodafoneThree for a consideration of approximately £4.3 billion (equivalent to about HK$45.494 billion).

According to the announcement, Vodafone (which holds a 51% stake in VodafoneThree), Vodafone TopCo, Hutchison, CKHGTH, and VodafoneThree entered into a framework agreement on May 5. The agreement involves a capital reduction and share cancellation for VodafoneThree. Prior to the completion of the cancellation, Vodafone will subscribe for ordinary A shares issued by VodafoneThree. Upon completion, VodafoneThree will legally pay the consideration amount to Hutchison in cash, and Hutchison's shares will be canceled.

Disclosed data shows that as of the end of 2025, VodafoneThree reported a pre-tax loss of approximately £131 million (about HK$1.388 billion) and a post-tax loss of around £98 million (about HK$1.041 billion).

CKH HOLDINGS stated that its net investment in VodafoneThree was recorded at HK$40.148 billion as of December 31, 2025. For the seven-month period following the merger transaction until the end of 2025, the group's share of VodafoneThree's pre-tax performance was a loss of HK$611 million, and its share of post-tax performance was a loss of HK$519 million.

Based on current information, the group expects to recognize a gain of HK$4.7 billion from the transaction.

The board of CKH HOLDINGS believes that the cancellation will allow the group to realize its investment at an attractive valuation. The substantial cash proceeds generated will be used for the following purposes: 1. Strengthening the group's financial position by increasing cash reserves and reducing consolidated net financial liabilities, thereby enhancing overall liquidity and financial stability in line with its existing credit rating; 2. Providing flexible resources for strategic development, including funding business expansion, infrastructure upgrades, and exploring potential future investment or acquisition opportunities, while also reinforcing the balance sheet; 3. Optimizing working capital management by maintaining appropriate operational reserves to support daily operations and cushion against potential market or operational risks.

Notably, this is not the first time this year that CKH HOLDINGS has divested UK business assets.

On February 26, CKH HOLDINGS and CK Infrastructure Holdings (01038.HK) issued a joint announcement stating that indirect wholly-owned subsidiaries of CK Infrastructure, Power Assets, and CK Asset would sell their respective 40%, 40%, and 20% stakes in UK Power Networks to Engie UK. The consideration for CK Infrastructure was approximately £4.2192 billion (about HK$44.3016 billion), valuing the total transaction at around HK$110.754 billion.

Market data showed that on May 6, shares of CKH HOLDINGS opened higher and continued to rise, closing at HK$70.1 per share, up 3.09% for the day.