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CK Hutchison is in talks to sell its Irish mobile operator to Liberty Global as the Hong Kong-based conglomerate continues to offload its European telecoms businesses.
The Three Ireland negotiations, which are at an advanced stage according to two people familiar with the matter, would give Liberty Global a stronger foothold in the Irish market. The telecoms group founded by “cable cowboy” John Malone only has a virtual operator, Virgin Mobile, in the republic, in addition to its broadband network.
Any sale of Three Ireland, which could be valued at up to €1.5bn according to New Street Research estimates, would come as CK Hutchison continues to explore an IPO of its telecoms assets. They include Italian operator WindTre and a 49 per cent stake in UK operator VodafoneThree.
London is in pole position for any listing, with the group having originally considered Amsterdam, according to two people familiar with the decision. However, one of the people said it could still opt for Hong Kong or abandon the plan altogether.
CK Hutchison has been gradually selling its European telecoms operations, which serve more than 60mn customers, amid tough market conditions that have pushed down prices and generated smaller returns.
Last year, the group closed a £16.5bn deal to merge Three UK with Vodafone UK. The move is expected to pave the way for the FTSE 100 group to acquire the remaining stake in due course.
Meanwhile, CK Hutchison has also explored sales of its operations in Sweden and Denmark, although any disposals are not expected to affect a potential IPO process, according to one person familiar with the matter.
CK Hutchison did not respond to requests for comment.
Liberty Global, which owns half of UK operator Virgin Media O2, has also been exploring options such as spinouts for its telecoms companies, which include half of Dutch player VodafoneZiggo.
Liberty Global declined to comment.
The group is also in talks to buy Vodafone’s stake in Ziggo, although differences in valuation persist, according to two people familiar with the talks.
James Ratzer, of New Street Research, said the deal would be the “final European move for Liberty” to combine its broadband offering with a mobile network: “This should offer substantial synergies and is sensible but all depends on the price paid.”
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