Li Ka-shing: Teaching When to Exit

Li Ka-shing’s success isn’t just about what he has built—it’s about when he has walked away from certain businesses. For many, it’s not hard to buy or invest. What is hard—and what Li has repeatedly done—is to know when to quit, or more precisely, when to exit. That is a rare skill, and it is central to his legacy.

Case Study 1: Selling Orange to Mannesmann (1999)

Business: Hutchison Whampoa’s UK mobile operator, Orange Plc
Exit Value: ~US$15 billion
Context:
Li Ka-shing entered the UK telecom market in the early 1990s when mobile communications were still nascent. Under his ownership, Orange grew rapidly into one of the UK’s top operators.

In 1999, amid the European telecom boom and soaring valuations for mobile networks, Li sold Orange to Germany’s Mannesmann for approximately US$15 billion — one of the largest telecom deals at the time.

Case Study 2: Hutchison Essar Sale to Vodafone (2007)

Business: Indian mobile operator Hutchison Essar
Exit Value: ~US$11.1 billion for a 67% stake
Context:
Hutchison entered India in the late 1990s, anticipating the country’s telecom explosion. By 2007, the business had captured major market share and was one of India’s fastest-growing mobile providers.

Li Ka-shing sold the controlling stake to Vodafone at a record valuation — just before the Indian telecom market entered a price-war phase that eroded margins.

Case Study 3: The Center Sale, Hong Kong (2017)

Business: The Center, a premium Grade-A office tower in Central, Hong Kong
Exit Value: HK$40.2 billion (≈ US$5.15 billion)
Context:
Li’s CK Asset Holdings owned The Center, one of Hong Kong’s most iconic commercial skyscrapers. By 2017, Hong Kong’s office property prices had reached record highs due to strong demand from mainland Chinese investors.

Li sold the building near the peak of the property cycle — at one of the highest per-square-foot prices ever recorded in Asia.

Key Takeaways

Invest early, grow patiently, and exit decisively.

Define your exit criteria in advance: Decide under what conditions you’d sell (valuation, market signal, regulation, etc.), so you avoid being sentimental.

Don’t get hooked only on potential upside: Sometimes risk increases more than reward. A smart exit comes when you realise value rather than wait for perfection.