GIC to invest £1.1 billion in Hutchison Whampoa’s enlarged UK telecoms business

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Singapore’s sovereign wealth fund GIC Pte Friday said it will invest £1.1 billion (British pounds), alongside four other institutional investors to acquire 33 per cent of the combined businesses of Three and O2 UK for £3.1 billion.

The other investors include, Canada Pension Plan Investment Board, Limpart Holdings Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority, Caisse de dépôt et placement du Québec and BTG Pactual of Brazil.

Overall, the deal will see Hutchison Whampoa Ltd sell a 33 per cent stake, or a third of its  UK telecommunications business, to these investors. While GIC and Canada Pension Plan will pay £1.1 billion each, the remaining £900m will be jointly paid by Abu Dhabi Investment Authority, Quebec pension fund CDPQ, and BTG Pactual, the Brazilian banking group.

GIC said its investment is conditional to the completion of Three UK’s acquisition of O2 UK and the combination of both businesses, which are subject to EU regulatory approvals.

“The full proceeds of the investments will be used, together with a committed bank facility of £6 billion, to fund the O2 UK acquisition from Telefonica,” the statement from the Singapore fund added.

Earlier this year, Hutchison owned by of Hong Kong billionaire Li Ka-shing, had reached a deal to buy Telefonica’s British mobile unit O2 for nearly £10.3bn ($15.4 billion) and merge it with O2, which is Hutchison 3G’s UK Holdings unit. The deal, if approved, will make Hutchison UK’s largest mobile operator with 31 million customers, equivalent to 40 per cent mobile market share.

Related: GIC & Temasek among funds in race to pick stake in merged British telcos: Report

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.