CK Hutchison carving out 28,500 site European towerco
What are the implications of CK Hutchison Networks becoming the 12th largest towerco globally?
CK Hutchison has recognised the global tide of MNOs carving out their towers, and hopes to ride the wave to improved efficiency –ultimately to an improved valuation. In July 2019, Hutchison announced that by the year end they anticipated carving out their 28,500 European into captive towerco CK Hutchison Networks. The towerco is to start with a footprint in the UK, Italy, Sweden, Denmark, Austria and Ireland, and tenancy ratio of 1.2.
The carve-out announcement
During CK Hutchison’s July 2019 earnings call, Frank John Sixt, Group Finance Director, Deputy MD & Executive Director told participants “we have developed a full plan and established as a subsidiary of CK Group Telecom, a new company called CK Hutchison Networks… (We) plan to transfer all of our tower assets from that group into a separate company.