Citi: CKH HOLDINGS (00001) sells equity interest in UK telecommunications joint venture, deemed value-added transaction, raises target price to 81.5 Hong Kong dollars.

Citigroup released a research report stating that CKH HOLDINGS (00001) announced the sale of its 49% stake in the UK telecommunications joint venture Vodafone Three to Vodafone for a cash consideration of 4.3 billion pounds (approximately 45.5 billion Hong Kong dollars). The bank believes that this sale is value-accretive for CKH HOLDINGS and trusts that management will continue to seek opportunities to unlock value, helping to narrow the significant NAV discount of approximately 58% currently seen in the stock. Citigroup has accordingly raised the target price of CKH HOLDINGS from 78 Hong Kong dollars to 81.5 Hong Kong dollars and maintains a "buy" rating. CKH HOLDINGS is expected to record post-tax proceeds of approximately 4.7 billion Hong Kong dollars after the completion of the transaction. Citigroup points out that the sale price is about 9% higher than the bank's valuation of Vodafone Three (approximately 41.7 billion Hong Kong dollars) and about 13% higher than CKH HOLDINGS' net investment amount at the end of 2025 (approximately 40.1 billion Hong Kong dollars). The bank anticipates that the transaction could be completed as early as the end of 2026.