- 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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