CDPQ to partner with HWL and four other leading international institutional investors in UK mobile telecommunications

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Caisse de dépôt et placement du Québec

May 07, 2015, 20:31 ET

Investors to acquire 33% of combined Three UK and O2 UK for £3.1 Billion on completion of acquisition of O2 from Telefonica

MONTREAL, May 7, 2015 /CNW Telbec/ - Hutchison Whampoa Limited ("HWL"), parent of UK telecom operator Three, announced that it has entered into agreements with CDPQ and four other leading institutional investors who will acquire stakes totaling 33% in the aggregate in the combined businesses of Three and O2 UK for a total consideration of £3.1 Billion. The other investors are, GIC of Singapore, Canada Pension Plan Investment Board, Limpart Holdings Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority ("ADIA"), and BTG Pactual of Brazil.

"By financing the acquisition of O2 by Three, CDPQ is contributing to the creation of a new mobile telecommunications leader in the United Kingdom," said Andreas Beroutsos, Executive Vice-President, Private Equity and Infrastructure at CDPQ. "Consistent with our orientation as a long-term investor, CDPQ invests strategically by partnering with Hutchison Whampoa Limited, a key industry player in the global marketplace." HWL, one of the largest public companies listed on the main board of The Hong Kong Stock Exchange, is a leading global player in telecommunications and data services, property development, infrastructure, port operations and retail.

"It is an honor to have such a strong collection of the world's largest and most sophisticated investors joining us as partners in building the combined business of Three and O2 UK, which will be the number one mobile operator in the UK with nearly 33 Million customers. The investors share our vision and belief in the value of creating a business with the necessary scale to enable us to compete effectively in the UK marketplace and to provide even better service and innovation using the largest and most resilient and advanced mobile network infrastructure in the country. Like us, the willingness of these investors to commit substantial capital to this investment reflects continued confidence in the UK economy and its commitment to maintain and foster a dynamic and world leading telecommunications sector, as well as a vote of confidence in Europe's plans for a single market in digital communications, leading to increased investment in the telecoms sector" said Canning Fok, Group Managing Director of HWL.

The investments are conditional on and will occur concurrently with completion by Three of the acquisition of O2 UK from Telefonica and its combination with Three's businesses, which is in turn subject to EU Competition approvals. The full proceeds of the investment will be used, together with a committed Bank Facility of £6 Billion, to fund the acquisition of O2 UK from Telefonica which was announced on 25 March 2015.

ABOUT LA CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

La Caisse de dépôt et placement du Québec is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2014, it held $225.9 billion in net assets. As one of Canada's leading institutional fund managers, la Caisse invests globally in major financial markets, private equity, infrastructure and real estate. For more information about la Caisse: www.lacaisse.com.

SOURCE Caisse de dépôt et placement du Québec