share_log

Vodafone-CK Hutchison Merger Announcement May Come By Next Week: Report

Benzinga ·  Jun 7, 2023 05:18
  • Vodafone Group PLC (NASDAQ:VOD) and CK Hutchison Holdings Ltd (OTC:CKHUF) are said to be in the final stages of agreeing to combine their U.K. businesses.
  • The announcement is expected to come this Friday or by early next week, Reuters Reported.
  • The terms of the deal remain the same as announced last October.
  • The deal would involve combining Vodafone UK and Three UK, with Vodafone holding 51% and CK Hutchison owning 49% of the new unit.
  • The deal values the equity of the combined group at £9 billion with £6 billion of debt, taking its enterprise value to £15 billion.
  • The report added that the deal would create U.K.'s largest mobile operator, with about 27 million customers, and can face strong scrutiny from regulators.
  • Last month, Vodafone reported FY23 revenue growth of 0.3% YoY to $49.05 billion, missing the consensus of $49.73 billion, and adjusted EPS of $0.12, missing the consensus of $1.15.
  • Vodafone generated $5.2 billion in free cash flow.
  • Price Action: VOD shares are trading higher by 1.25% at $9.70 premarket on the last check Wednesday.
Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment