CK Hutchison Exits Vodafone Joint Venture for $5.8 Billion — Update

By Kimberley Kao

Vodafone Group will take full ownership of its joint venture with CK Hutchison after the Hong Kong conglomerate agreed to sell its stake in one of the U.K.'s largest mobile operators for more than US$5 billion.

CK Hutchison will offload its 49% stake in VodafoneThree for 4.30 billion pounds, equivalent to US$5.82 billion, through a share cancellation, the companies said Tuesday.

The transaction implies an enterprise value of 13.85 billion pounds for VodafoneThree, formed via the merger of Vodafone's U.K. business and Three UK.

The move comes as CK Hutchison, whose businesses span from retail to shipping, divests some its assets to shore up financial stability. In February, CK Group subsidiaries announced plans to sell utility company UK Power Networks for over $14 billion to France's Engie SA.

The conglomerate said it expects to record a divestment gain of about 4.7 billion Hong Kong dollars, or US$600 million, from the VodafoneThree exit, and will use the proceeds to reduce debt and strengthen its balance sheet.

Part of the funds will also be put toward business expansion, potential future acquisitions and infrastructure upgrades.

Shares of CK Hutchison rose over 4% in afternoon trading in Hong Kong after the announcement, and were last 2.7% higher.

Vodafone said it will fund the deal using existing cash resources, and expects to complete the transaction in the second half of 2026. There will be no change to VodafoneThree's management team.

"We believe now is the right time to take full ownership of VodafoneThree, enabling us to move at an even faster pace to transform the UK's digital infrastructure and realize value for our shareholders," it said in a statement.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

May 05, 2026 02:35 ET (06:35 GMT)