Li Ka-shing set to buy UK's O2 for US$15b
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E-mail China Daily, January 23, 2015
Hutchison Whampoa Ltd, the conglomerate controlled by Hong Kong's billionaire Li Ka-shing, is in exclusive negotiations to buy UK's second-largest mobile operator, O2, for about 10 billion pounds (US$15 billion), announced the company in a filing to Hong Kong Exchanges on Friday.
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A woman speaks on a mobile telephone outside an O2 store in central London Nov 24, 2014. [Photo/Agencies]? |
The deal is part of a dazzling shopping spree by Li Ka-shing, one of Asia's wealthiest men, as his empire just bought Britain's train company Eversholt Rail for an enterprise value of 2.5 billion pounds, announced its counterpart on Tuesday.
According to Financial Times, O2's shareholder Telefonica wants the cash to help reduce its high net debt levels and fund deal-making in more core countries such as Brazil, while Hutchison Whampoa has recently freed additional money to strike deals in Europe following a corporate reorganization.
The 86-year-old billionaire announced earlier on Jan 9 that he would split his conglomerate into two listed companies, one focusing on property and the other on telecoms, retail and energy.
According to Bloomberg, the UK is primed for more deals after wireless-market leader EE began exclusive talks last month to be acquired by BT Group Plc, leaving smaller carriers looking for ways to compete. Hutchison shares were up 0.7 percent to HK$99 in pre- market trading on Friday before the suspension.
The company was also studying other options in Europe including merging its Italian mobile unit with a local competitor, said Bloomberg.
