Auzzi Shopping

Men's Weekly

.

CK Hutchison forms mobile network company in Italy with EQT Infrastructure

  • Written by Auzzi Shopping
  • In line with CKHGT's "asset light" strategy to improve operational efficiencies while unlocking WINDTRE's network business' value
  • Creates the first independent wholesale mobile network services provider in Italy
  • Improves WINDTRE's capital allocation and allows WINDTRE to further its strategic focus on core product offerings

HONG KONG SAR - Media OutReach - 12 May 2023 - CK Hutchison Group Telecom ("CKHGT"), a wholly owned subsidiary of CK Hutchison Holdings Limited, and EQT Infrastructure, part of the global private equity firm EQT, have agreed to form a new company ("Company") that will provide wholesale mobile and wholesale fixed communications services in Italy.

CKHGT's Italian mobile business, WINDTRE, will transfer its active network equipment and wholesale mobile and wholesale fixed communications services business in Italy to the new Company, which will be 60% owned by EQT Infrastructure while CKHGT will hold 40%. A board will be formed to oversee the Company. It will consist of four members nominated by EQT Infrastructure and CKHGT (two each respectively) as well as several independents. The enterprise value of the new company is EUR3.4 billion.

WINDTRE will be the anchor tenant of the newly formed Company, signing a long-term service agreement, providing continuity for its retail customers, while benefiting from innovative technologies, cash flow advantages, as well as providing services to its retail customers on a state-of-the-art network. WINDTRE will focus on servicing its retail customers while expanding its revenue streams beyond its core retail offering of fixed and mobile services. CKHGT will benefit from an investment in an independent network business that will be better able to tap into the wholesale telecommunications market and attract B2B customers and IT servicers looking for a partner for their IoT, public network and 5G projects. Furthermore, customers of the new Company will have the assurance of collaborating with a mobile network operator with its own separate management independent of WINDTRE.

"This is part of our Group's 'asset light strategy' for us to recoup the cost of our network investment. At the same time, WINDTRE will benefit from having a partner to own and maintain a state-of-the-art network which will benefit our customers while having certainty on its cost base for OPEX and CAPEX," said Canning Fok, Group Co-Managing Director of CK Hutchison and Managing Director of CKHGT. "Our partner EQT is a renowned investor in this infrastructure investment space, and we look forward to working with them for a very long time."

The transaction is subject to certain procedures and regulatory approvals and is expected to close in six to nine months.

For more information about the company, please visit www.ckh.com.hk

Hashtag: #CKHutchison

The issuer is solely responsible for the content of this announcement.

Today's Features at Auzzi

Melbourne Psychologists Warning for Anxiety Sufferers

Melbourne — Australia’s multicultural melting pot, home to great coffee and holder of the unenviable title of ‘world’s most locked down city’ during the COVID pandemic.  Pre-CO...

Want to Stop Breastfeeding but Baby Won’t Take a Bottle? Here’s What You Can Do

Many moms reach a point where they need to wean, but it gets challenging when you want to stop breastfeeding but baby won’t take bottle. The infants frequently choose nursing as the easies...

5 Ways Business Intelligence Solutions in Australia Boost Profits

In today's competitive Australian market, businesses are constantly seeking ways to gain an edge. One of the most powerful tools available is the strategic implementation of business intel...

Cruises from Sydney: What's the Best Deal for YOUR Dream Holiday?

Dreaming of escaping the everyday? Imagine waking up to the vast, shimmering ocean, the salty air filling your lungs, and the promise of adventure on the horizon. For many Australians, tha...

The Expert's Guide to Choosing the Right IT Company in Perth

Finding the right IT company in Perth can feel like navigating a minefield. With so many providers vying for your attention, how do you separate the wheat from the chaff? Your business's t...

5 Ways a Toto Toilet Can Revolutionise Your Bathroom (and Save ££)

Let's face it, the toilet is often the unsung hero of the bathroom. It's a necessity, but rarely something we get excited about. But what if I told you that a toilet could actually revolut...

Biltong vs Jerky: The Ultimate Guide to Choosing Your Perfect Snack

When those snack cravings hit, and you're after something savoury, protein-packed, and utterly delicious, the choices can seem endless. But two contenders often rise to the top: biltong an...