Hutchison to get $6 billion from institutional investors

Hutchison to get $6 billion from institutional investors

HONG KONG - Hong Kong conglomerate Hutchison Whampoa said Friday that it will receive 3.1 billion British pounds ($4.83 billion) in capital from five institutional investors for its mobile telecommunications business in the UK

Hutchison plans to acquire O2 UK, the second-biggest mobile carrier in Britain, from Spanish telecom giant Telefonica for as much as 10.25 billion pounds and merge it with its UK mobile unit. The deal is expected to create the largest British mobile operator with 33 million customers.

The five investors include the Canada Pension Plan Investment Board, Singaporean sovereign wealth fund GIC and Abu Dhabi Investment Authority subsidiary Limpart Holdings. They are expected to own a combined 33 per cent stake in the new company.

The O2 acquisition is subject to approval by European Union regulators. To finance the deal, Hutchison will also seek out a 6 billion pound credit line from a lender.

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