Recently, media reports suggested that CKH Holdings (00001) is considering spinning off its global telecommunications business, which covers Europe, Hong Kong, and Southeast Asia, as early as the third quarter, with listings in both Hong Kong and London. Goldman Sachs, Citigroup, and Deutsche Bank are reportedly collaborating with CKH on the spin-off and listing matters. In response, CKH issued an announcement stating that it has not made any decision regarding transactions involving its existing telecommunications or retail assets and businesses, including a separate listing.
CKH indicated that recent media reports have involved the potential separate listing of the group's global telecommunications assets and business, as well as its health and beauty products business. Other reports have concerned potential transactions involving the group's telecommunications assets in several European countries. The company stated that it regularly receives proposals to explore and evaluate opportunities that may be considered to enhance long-term shareholder value. These proposals include potential transactions related to certain of the group's assets and businesses, which encompass the independent listing of such businesses. However, it is currently uncertain whether any of the aforementioned transactions will proceed.
According to earlier media reports, CKH is considering London as the primary listing venue for its global telecommunications business, with Hong Kong as a secondary listing venue. The related business could be valued at approximately $20 billion. It is anticipated that following the listing, the global telecommunications business could be quickly included in the London FTSE 100 Index. Nonetheless, other sources indicated that CKH is still evaluating a merger of its Italian telecommunications unit, Wind Tre, with the Italian operations of French telecom company Iliad. Such a transaction might lead CKH to pause its plan for the spin-off listing of the global telecommunications business.
The reports suggest that there are currently differing internal views within CKH regarding the future direction of the global telecommunications business, and a decision may be made within the coming weeks.
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