CK Hutchison, the telecom and infrastructure group controlled by Hong Kong billionaire Li Ka-shing, has agreed to sell its stake in UK mobile operator VodafoneThree to its joint venture partner for $5.8 billion.
The stake will be acquired by Vodafone Group, which already owns 51% of VodafoneThree. CK Hutchison holds the remaining 49% through its telecom arm, CK Hutchison Group Telecom Holdings.
Following the announcement, CK Hutchison shares rose more than 4%, reaching their highest level in over six years, while Vodafone shares also climbed to their strongest level since 2022.
Deal brings full control to Vodafone
VodafoneThree was created through the merger of Vodafone’s UK operations and Hutchison’s Three UK business, forming the country’s largest mobile network operator and surpassing rivals such as BT’s EE and O2.
Vodafone had an option to acquire full ownership after three years, but the company moved earlier than expected to complete the buyout.
Vodafone CEO Margherita Della Valle said the timing reflects the company’s goal of accelerating investment in the UK’s digital infrastructure and creating long-term shareholder value.
Network investment and savings
VodafoneThree is currently investing £11 billion in network upgrades and aims to deliver around £700 million in cost savings by 2030. The existing leadership team will remain in place, and the Vodafone and Three brands will continue to operate.
Analysts described the deal as earlier than expected but positively priced, even though Vodafone may temporarily pause share buybacks.
Strategic focus shift
The transaction is part of Vodafone’s broader strategy to concentrate on core markets such as the UK and Germany. Under Della Valle, the company has exited Spain and Italy and reduced exposure to other European ventures.
Vodafone shares have risen sharply since her appointment three years ago.
CK Hutchison’s broader plans
For CK Hutchison, the sale allows it to unlock value from its investment and generate significant cash proceeds. The group continues to operate telecom businesses across Europe and Asia, including in Italy, Sweden, Denmark, Austria, Ireland, Hong Kong, and Macau.
The company is also reportedly considering a potential listing of its global telecom division in London and Hong Kong.
Outlook
The deal is subject to approval under the UK National Security and Investment Act and is expected to close in the second half of 2026.
