Three UK Owner Mulls Spinning Off Global Telco Assets in £15bn Deal

Hong Kong conglomerate CK Hutchison Holdings (CKH), the owner of UK mobile operator Three, is exploring a potential spin-off and London listing of its global telecommunications assets in a deal that could be worth up to £15 billion.

Talks Underway for Potential Spin-Off

CKH, founded by Hong Kong tycoon Li Ka-shing, has begun preparations to carve out its telecoms businesses across Europe, Hong Kong and Southeast Asia into a separate entity that would be listed on the London Stock Exchange.

The new company would include CKH’s Three-branded mobile networks in the UK, Austria, Denmark, Ireland and Sweden, as well as its fixed and mobile operations in Hong Kong, Macau, Indonesia, Sri Lanka and Vietnam.

“From time to time, the Group receives proposals and explores opportunities that may enhance long term shareholder value, including possible transactions relating to our global telecommunication businesses,” CKH said in a statement.

Deal Valued at £10-15 Billion

According to sources familiar with the matter, the proposed spin-off could value CKH’s telecoms assets at between £10 billion and £15 billion.

However, the conglomerate cautioned that no decision has been made yet on whether to proceed with any transaction. “As at the date of this announcement, the Board has not made any decision to proceed with any transaction,” the statement said.

Timing Remains Uncertain

While preparations are reportedly underway, the exact timing of the potential listing remains unclear. Reuters reported that the deal could be ready this year, but CKH’s recent merger of Three UK with Vodafone’s UK operations could complicate matters.

The £15bn merger, which was just approved by regulators, is not expected to be fully finalized until later this year or early 2026. This could make it difficult for CKH to move forward with the spin-off and London listing in 2025.

Forward-Looking Approach

Despite the uncertainty around timing, analysts see the proposed spin-off as a strategic move by CKH to unlock value in its global telecoms portfolio and position the business for future growth opportunities.

“Separating the telecoms assets into a standalone entity would give CKH more flexibility to pursue deals and partnerships in the rapidly evolving 5G and IoT space,” said Mark Benson, a Hong Kong-based telecoms analyst at New Street Research. “It could also make the business more attractive to investors who want targeted exposure to the sector.”

As CKH continues to evaluate its options, the telecoms industry will be closely watching to see if and when this major reshuffling of global assets moves forward. For now, though, it’s a waiting game as the conglomerate navigates the complexities of its recent UK merger and the ever-changing landscape of the telecommunications market.