CK Hutchison (CKHH) last week announced an agreement for CK Hutchison Group Telecom (CKHGT), an indirect wholly-owned subsidiary of CKHH, to sell CK Hutchison Networks (CKH Networks) indirect interests in tower assets and businesses to Cellnex Telecom for €10 billion.
Cellnex is Europe’s leading operator of wireless telecommunications and broadcasting infrastructures.
CKH Networks holds CKHGT’s interests in the European telecom tower assets and businesses in Austria, Denmark, Ireland, Italy, Sweden and the United Kingdom.
The transaction unlocks the underlying value of the European telecommunication tower assets and businesses portfolio for CKHGT and CKHH while accelerating the rollout of 5G across CKHGT’s networks.
The agreement is structured as six separate transactions – one for each country – with closing in each country whenever the relevant conditions for the transaction are met. The first transactions are expected to close by the end of December 2020 while others will occur in 2021.
CKHGT will also enter into long-term service contracts with Cellnex in each relevant jurisdiction regarding the provision of passive telecommunications infrastructure services, as well as strategically partnering with Cellnex to roll out approximately 6,700 additional sites across the six countries. The contracts are for an initial period of 15 years which can be extended for an additional 15 years.
Canning Fok, CKHH’s Group Co-managing Director
This will improve our operational efficiency and accelerate 5G rollout, put us in a very good position if the right opportunities arise, and provide us an opportunity to enhance our shareholders’ returns.
