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The train leasing company is owned by a consortium of the group’s companies: CK Infrastructure, which holds 65 per cent, along with CK Asset Holdings (20 per cent), Power Asset Holdings (10 per cent) and CK Hutchison Holdings (5 per cent), according to the group.
The deal, which had secured the nod of the UK’s Competition and Markets Authority, would “generate substantial revenue”, CK Infrastructure said on Wednesday.
The price was not disclosed, but earlier reports suggested that the group was seeking a valuation of as much as £4 billion (US$5.38 billion). The group acquired the asset in 2015 for £2.5 billion.
During CK Holdings’ interim results announcement in August, chairman Victor Li Tzar-kuoi said that the decision to sell the group’s interest in UK Rails would allow the “joint venture to unlock the potential value of the asset”.
“Only by buying and selling can a business grow bigger,” Li said. “We have never liked borrowing, so we reserve funds from time to time for larger transactions.”
Eversholt Rail is a top UK rail vehicle leasing company. It serves rail and freight operators by leasing them regional, short-distance and high-speed passenger trains, as well as freight locomotives, under long-term contracts.
