- CK Hutchison recently announced that it is selling certain tower assets for EUR10 billion, which is equivalent to 44% and 15% of its market capitalization and enterprise value, respectively.
- CK Hutchison has multiple options to allocate its cash proceeds from the divestment of its tower assets; I will favor share buybacks, special dividends and deleveraging over acquisitions.
- The company trades at 6.3 times consensus forward FY 2021 P/E and 0.45 times P/B, and it offers a consensus forward FY 2021 dividend yield of 5.0%.
For further details see:
CK Hutchison: Tower Asset Divestment And Capital Allocation In The Spotlight