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GIC to invest £1.1b with 4 other institutional investors to acquire stake in Three and O2 UK

Friday, May 8, 2015 - 09:38
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A O2 mobile phone store on Oxford Street in London in 2005. Hutchison Whampoa said investors have agreed to pay up to £2.8 billion (S$5.74 billion) for stakes in its merged British mobile phone giants - 02 and Three.

GIC on Friday morning said it will invest £1.1 billion (S$2.26 billion) alongside four other institutional investors to acquire 33 per cent of the combined businesses of Three and O2 UK for £3.1 billion.

The other institutional investors are: Canada Pension Plan Investment Board, Limpart Holdings Limited (a wholly owned subsidiary of the Abu Dhabi Investment Authority), Caisse de dépôt et placement du Québec and BTG Pactual of Brazil.

GIC's investment is conditional on and will occur concurrently with the completion of Three UK's acquisition of O2 UK and the combination of both businesses, which are subject to European Union regulatory approvals.

"The full proceeds of the investments will be used, together with a committed Bank Facility of £6 Billion, to fund the O2 UK acquisition from Telefonica," it said.

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