CK Hutchison has shared plans with the U.K. press to carry out an IPO of the merged 3UK and O2, although he did not give a projected timeframe for the listing.
The Hong Kong telco’s co-CEO Canning Fok told the Financial Times that external investors have agreed to support the flotation of 3UK/O2.
The combined company is valued at £15 billion, the paper said, while investors have committed around £3 billion to fund the deal. The investor group have a "liquidity requirement," Fok said, adding that one way to solve that problem is through an IPO.
Fok also confirmed that the merged entity will be managed by David Dyson, who currently serves as chief executive of 3UK.
He added that the company has yet to make a final decision on the brand the merged operator will use. Initially, the firm will retain both the 3 and O2 names, he said.
But before Fok can bring his plans to fruition, the deal needs to pass regulatory scrutiny.
The European Commission was planning to block Telenor and TeliaSonera’s plans to merge in Denmark, had the pair not withdrawn from the deal earlier this month, on the grounds that it would have left the country with only three mobile network operators.
A similar fate could await the proposed 3UK/O2 tie-up. While different competitive dynamics could lead the Commission down a different path, those involved in the 3UK/O2 deal are doubtless concerned about an apparently tougher stance in Brussels.
Fok reminded the FT that his company has in recent years succeeded with similar mergers in Austria and in Ireland, and said he is confident of coming up with a solution "in which everyone is comfortable."
