CK Infrastructure on the lookout for big-ticket M&As

24 March 2020 - 12:00 am UTC

Hong Kong-listed Cheung Kong Infrastructure (CK Infrastructure), fresh from reporting reduced debt levels, is considering big-ticket acquisitions this year.

The railway-to-water conglomerate will likely tie up with Power Assets and CK Assets – also owned by billionaire Li Ka-shing and his family – for the potential takeovers, the company said in a statement, without giving details on the specific target sectors.

“CKI will continue to study acquisitions that will add value to the group’s portfolio,” Chairman Victor Li said in the 18 March statement.  “The company’s strategy is to target sizeable acquisitions that demand large capital investment.”

Li, who oversees one of Asia’s largest business empires, said his company will not pursue any acquisitions with a “must-win” mentality. The conglomerate will seek to preserve a balance between earnings growth and a comfortable gearing position, which will be a priority for CKI in the future as well, he said.

CKI reported more than HKD 12bn (USD 1.6bn) cash in hand as of 31 December last year, with a debt-to-asset ratio of 13.5%, down from 17.6% a year earlier. Company management said in an investor call last week that an M&A deal could still be far off in 2020, given the COVID-19 outbreak.

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