CK Hutchison's VodafoneThree Stake Sale Likely to Enhance Value — Market Talk

CK Hutchison's decision to sell its stake in VodafoneThree to Vodafone for around 4.3 billion pounds sterling should enhance the Hong Kong conglomerate's value, say Citi analysts George Choi and Timothy Chau in a note. The consideration is around 9% greater than what the analysts value the stake for and roughly 13% higher than the company's original investment in VodafoneThree, they say. They expect Hutchison to continue looking into opportunities to unlock value. This could narrow its stock's steep net-asset value discount, which is currently at around 58%, they say. Citi raises its target price to HK$$81.50 from HK$78.00 and maintains a buy rating. Shares rise 1.4% to HK$68.95. (megan.cheah@wsj.com)