CKH Holdings 计划推动其旗下的电信业务 Wind Tre SpA 与意大利的同行公司进行合并。
CKH HOLDINGS plans to promote the merger of its telecommunications business, Wind Tre SpA, with an Italian peer company. CKH HOLDINGS has initiated preliminary negotiations with Fastweb, a subsidiary of Swisscom, and Iliad SA, owned by local tycoon Xavier Niel. However, all parties have not yet expressed their commitment to proceed with the acquisition. It is expected that once the merger is completed, it will trigger a rigorous anti-monopoly review. Wind Tre, under CKH HOLDINGS, has a market share in the Italian mobile communications market that is only slightly higher than Telecom Italia SpA and Vodafone. In addition, in May of this year, CKH HOLDINGS announced the establishment of a new company in collaboration with private equity firm EQT, under its subsidiary CK Hutchison Group Telecom (CKHGT). The transaction is expected to be completed within 6 to 9 months.
Zhitong App has learned that on December 22nd, CKH HOLDINGS (00001) is considering seeking a merger between its Italian mobile communications business, Wind Tre SpA, and a local competitor in Italy. CKH HOLDINGS has initiated preliminary negotiations with Fastweb, a subsidiary of Swisscom, and Iliad SA, owned by local tycoon Xavier Niel. However, all parties have not yet expressed their intentions to proceed with the merger.
This week, Iliad announced its plan to acquire Vodafone's Italian business for EUR 10.5 billion (approximately HKD 90.2 billion), while Fastweb is also considering making a bid for the acquisition. The report states that the telecommunications market in Italy is highly competitive, with 5 major mobile operators and 4 major broadband network providers vying for market share, prompting operators to consider mergers and acquisitions as a response.
It is reported that Wind Tre, a subsidiary of CKH HOLDINGS, has a market share in the mobile communications market that is only higher than Telecom Italia SpA and Vodafone. In the broadband market, Telecom Italia has the highest market share, while Wind Tre, Vodafone, and Fastweb have comparable market shares. If Wind Tre seeks to merge with Iliad SA, it is expected to trigger a rigorous antitrust review. In 2018, Iliad officially entered the local telecommunications market, while CKH HOLDINGS merged its telecommunications business with VimpelCom to form the current Wind Tre.
In addition, in May of this year, CKH HOLDINGS announced that its subsidiary, CK Hutchison Group Telecom (CKHGT), had entered into an agreement with private equity firm EQT to establish a new company to provide wholesale mobile and wholesale fixed-line communication services in Italy.
The new joint venture company will be owned 40% by CKH HOLDINGS and 60% by EQT, and will be supervised by a board of directors, including 2 members nominated by each party and several independent members. The transaction is subject to relevant procedures and approvals from regulatory authorities, and is expected to be completed within 6 to 9 months.
According to the agreement, the agreed enterprise value of the new company is EUR 3.4 billion (approximately HKD 29 billion). CKH HOLDINGS will transfer Wind Tre's wholesale mobile and wholesale fixed-line communication services in Italy to the new company, while Wind Tre will sign a long-term service agreement with the newly established company and continue to provide services to its existing retail customers. It is expected that the entire transaction will generate cash proceeds of approximately HKD 3.8 billion. CKH HOLDINGS Joint Managing Director and CKHGT Managing Director, Huo Jianning, stated that this transaction aligns with the group's "asset-light" strategy, allowing the group to recoup its investment in the network. At the same time, Wind Tre's partners will maintain the network's advanced technology, benefiting the group's customers and ensuring stable operating and capital expenditures. The group's partner, EQT, is a renowned investor in the infrastructure investment field, and we look forward to a long-term collaboration with them.