Sovereign wealth funds invest in UK mobile phone operator
The Abu Dhabi Investment Authority (ADIA), Singapore’s GIC, the Canada Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec are investing in a UK mobile phone operator.
The four investors have joined Brazilian investment bank BTG Pactual in the £3.1bn ($4.78bn) purchase of a 33% stake in the UK’s combined Three and O2 networks.
The funds are investing alongside Hong Kong holding company Hutchison Whampoa (HWL), which owns Three and is paying Telefonica £9.25bn for O2 in a deal backed by £6bn in bank finance.
GIC and the CPPIB will each invest £1.1bn.
The ADIA is investing through its wholly owned Limpart Holdings subsidiary, while Québec’s La Caisse is investing through Ivanhoé Cambridge.
The latter said the deal gave it a 12% stake.
Mark Jenkins, CPPIB’s senior managing director and global head of private investments, said: “This is an exceptional opportunity to acquire a meaningful stake in what will become a leading mobile operator in the UK, giving us immediate scale in an important sector.
“We expect this investment will generate attractive, long-term, risk-adjusted returns.”
CPPIB said the deal would close next year, pending EU regulatory approval.