GIC, four other investors buy $2.3b stake in Three and O2 UK

It will own 33% of the mobile phone firm.

GIC and four other institutional investors will invest $2.3b (£1.1b) to acquire a 33% stake in Three and O2 UK, the United Kingdom’s largest mobile phone network. 

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.

Three is owned by Hutchison Whampoa. In March, it revealed that it is acquiring O2 from Telefonica for £10.5b

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 still subject to EU 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.