Media365
A consortium comprising CK Infrastructure Holdings, CK Asset Holdings and Power Assets Holdings has agreed to sell all of its interest in UK Power Networks to French multinational electric utility Engie in a deal worth £10.5 billion (US$14.2 billion).
The disposal, under an agreement signed on Wednesday, will enable the group to monetise its investment at an attractive valuation, delivering a significant accounting gain and cash proceeds for future investments or acquisitions, the group of companies said in a joint filing to Hong Kong’s stock exchange on Thursday morning.
UK Power Networks is 40 per cent owned by CK Infrastructure, 40 per cent by Power Assets and 20 per cent by CK Asset. It is one of the United Kingdom’s largest power distributors, comprising three regional networks with a distribution area that covers 8.3 million consumers in London, southeastern and eastern England, with power lines spanning around 190,000km. The CK group acquired the UK electricity operator in 2010, for £5.77 billion.
Group chairman Victor Li Tzar-kuoi said it would continue to “identify and pursue investment opportunities whether in regulated industries or businesses with long-term secure contracts, or other businesses which offer great potential, in existing and new markets, including the UK and beyond”.
The chief executive of Engie, Catherine MacGregor, said: “The acquisition of UK Power Networks marks a major milestone in the implementation of our strategic priorities.”
