Three and Vodafone merger talks 'progressive and positive' - Three UK CFO (updated)

Hutchison Telecommunications Hong Kong Holdings

16/03/2023 11:16

(Adds detail on results)
       LONDON, March 16 (Reuters) - The chief financial officer
of Hutchison's  0001.HK  Three UK said talks with Vodafone
 VOD.L  about combining their networks in Britain were
"progressive and positive", although he declined to comment on
the outcome.
    Discussions "are moving in the right direction", Darren
Purkis added in an interview after the mobile operator reported
results on Thursday. "I think there is a desire from both
parties." 
    Vodafone said in October it was in talks with its smaller
rival to combine the country's third and fourth biggest
networks, with an ownership split of 51% Vodafone and 49%
Three's owner, Hong Kong's CK Hutchison.
    "A merger of this size is complex, so there's a lot of
moving parts and we just need to continue working through the
list," Purkis said.
    Complexities include the fact that Vodafone and Three are in
separate network-sharing agreements, as well as untangling
Vodafone UK's ties with its parent group.
    Sources have said the talks are in the final stages.
    Purkis said Three was pleased overall with its progress in 
a challenging macroeconomic environment in 2022.
    The operator reported a 3% rise in revenue to 2.52 billion
pounds ($3.04 billion), driven by a 6% increase in its active
customer base to more than 10 million. Core earnings rose 3% to
612 million pounds. 
    ($1 = 0.8301 pounds)

 (Reporting by Paul Sandle; Editing by William James, David
Goodman and Jan Harvey)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))