Vodafone and CK Hutchison are nearing an agreement to combine their UK telecoms businesses at an estimated £15bn enterprise value, as per sources. FT reports that the combined group’s equity is valued at about £9bn with roughly £6bn of debt. The telecom units namely Vodafone UK and Three UK (of CK Hutch) have been in talks to combine their businesses since last year. However, this has seen delays amid regulatory issues and the departure of Vodafone CEO Nick Read. In October, the companies said that a deal would unlock huge cost savings and that Vodafone would own 51% and CK Hutch 49% of the combined company.
Vodafone’s dollar bonds were trading flat with its 4.375% 2028s at 100.88, yielding 4.2%. CK Hutch’s dollar bonds were also trading stable with its 4.75% 2028s at 101.85, yielding 4.32%
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