Telefónica launches exclusive negotiations with Hutchinson … – Business Journal – Portugal

Telefónica launches exclusive negotiations with Hutchinson Whampoa for the sale of O2

Li Ka-shing, owner of conglomerate Hutchinson Whampoa of Hong Kong, is in talks with Telefonica for the purchase of the British subsidiary of the Spanish company for an indicative value of around 13.5 billion euros.

Telefónica confirmed this sexta- Thursday, January 23, the Spanish market regulator (National Securities Market Commission), reported in, which began exclusive negotiations with the company Hutchinson Whampoa of Hong Kong, led by billionaire Li Ka-shing, for the sale of subsidiary sual O2 UK.

The “target price” of this operation is around 10.25 millones pounds (approximately EUR 13.5 million). The process will last “several weeks,” said the Spanish company to the regulator.

After trying to sell your mobile operator to the group British Telecom (BT) last December, Telefónica found another buyer. Other telecommunications companies such as Skym, showed interest in the subsidiary of the Group chaired by César Alierta in recent weeks.

With this transaction the company based in Hong Kong will join its subsidiary Three with the subsidiary of Alierta, said Thursday the Financial Times. The combination of O2, the second mobile operator in the UK with around 22 million customers, with Threee will generate the largest mobile network company that country with a share of 41% markets, above the EE (Everything Everywhere). Currently, EE holds 32% of the total UK’s mobile business and is in the process of merging with BT, which in turn is a leader in the wireline market.

Li Ka-shing who has citizenship of Hong Kong and also Canadian, owns the Hutchinson Whampoa conglomerate, headquartered in the Chinese administrative region.

With the confirmation of negotiations between the two companies, Telefónica has increased by almost 3% on the Madrid stock exchange, placing the company’s shares to 13.3 euros.

The shares of Hutchinson Whampoa appreciated 4% on the Hong Kong stock market shortly after the ban on trading of the conglomerate bonds have been raised by the local regulator.

(News updated at 11:11 with the confirmation of Telefónica to the Spanish market regulator)