CKH Holdings plans to cancel its stake in Vodafone Three for 4.3 billion.

CKH Holdings (00001) announced that as of the date of this announcement, VodafoneThree's issued share capital is owned by Vodafone at 51% and by CKH at 49%. On May 5, 2026, the parties (a) Vodafone, (b) CKH, (c) Vodafone TopCo as guarantor for Vodafone and VodafoneThree, (d) CKHGTH as guarantor for CKH, and (e) VodafoneThree entered into a framework agreement. Under this agreement, upon the fulfillment of conditions or waivers and completion of the cancellation matters, Vodafone will inject funds into VodafoneThree before the completion of the cancellation matters. On the scheduled day of cancellation, CKH's shares will be cancelled at a price of 4.3 billion, and VodafoneThree will pay CKH in cash upon completion of the cancellation. The Board believes that the cancellation will enable the Group to realize attractive valuations for its investment projects. The significant cash proceeds generated from the cancellation will: (i) Strengthen the Group's financial position - by increasing cash reserves and reducing overall net financial liabilities, enhancing overall liquidity and financial stability, and maintaining the Group's existing credit ratings; (ii) Provide flexible resources for strategic development - by funding business expansion and infrastructure upgrades, seeking potential future investments or acquisition opportunities, while also strengthening the Group's balance sheet; and (iii) Optimize working capital management - by maintaining adequate working capital reserves to support daily operations and mitigate potential market or operational risks.