CK Infrastructure (CKI) is considering a proposal that will see the company and its affiliates sell minority interest in some of their European infrastructure assets to a new investment group planned to be listed on the London Stock Exchange.
The new investment company is intended to provide investors in the London market with opportunities to invest in the European assets. The new firm might invest in other third-party infrastructure assets going forward, according to a stock exchange disclosure Tuesday (20 November). CKI did not specify the public listing timeline.
If the proposal proceeds, it is not expected to have any “material impact” on the company’s existing portfolio of infrastructure assets, the Hong Kong-based infrastructure and utilities giant said.
The Hong Kong-based conglomerate may hold a minority stake in the new investment group following the completion of the listing, the stock exchange disclosure added.
CKI, controlled by Hong Kong billionaire Li Ka-shing and his family, is a Hong Kong-listed infrastructure company with assets in Hong Kong and mainland China as well as Europe, Australasia and North America. It has seven investments in the UK, mostly in regulated energy and water assets.
Its most valuable UK investments include: a 40% stake in regional electricity grid operator UK Power Networks, which has a regulated asset value of around GBP 6bn; and a 40% stake in Northumbrian Water, which has a regulatory capital value of around GBP 4.2bn.
The other regulated assets in CKI’s UK portfolio are Wales & West Utilities (30%), Southern Water (4.75%) and Northern Gas Networks (47%). The Hong Kong firm also holds stakes in the Seabank gas power station (25%) and the rolling stock company Eversholt (50%).
In the Netherlands, CKI has a 35% stake in AVR, the country’s largest energy-from-waste company. It operates two waste treatment plants: Rozenburg in the Port of Rotterdam area, and Duiven near the German border. In addition, it controls 50% of Portuguese wind farm developer Iberwind. In October 2017, the Hong Kong firm acquired 50% of German submetering group ista International GmbH.
CKI also holds a 38% interest in Power Assets, a global investor in power and utility-related businesses.
A further announcement will be made where required under the listing rules of the Hong Kong Stock Exchange, CKI said.