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Denise Tsang

Cheung Kong Infrastructure Holdings' (CKI) acquisition spree shows no signs of abating, with a purchase  in Australia looming large.

The infrastructure flagship of property developer Cheung Kong (Holdings)  is looking for growth opportunities outside  Hong Kong and is now waiting for news on a bid for the 40km Mitcham-Frankston freeway connecting  Melbourne's eastern and southeastern suburbs.

The A$2 billion (HK$10.78 billion) project is scheduled for completion in 2008.

A  decision by the state of Victoria on the tender is expected soon.

Last week, CKI completed its fourth acquisition so far this year, buying a  gas distribution network in northern England for #1.39 billion (HK$19.45 billion).

Analysts say CKI has joined forces with four partners in a consortium called Mitcham-Frankston Motorway and is up against one rival bidder - ConnectEast.

'We believe CKI's role in the consortium would be similar to that in Sydney's Cross City Tunnel, where it will be a significant provider of capital,' Morgan Stanley analyst Simon Lee said.

The HK$3.5 billion  tunnel project, in which CKI has a 50 per cent  interest, links Sydney's eastern suburbs with the city's west and is due to open in 2006.

Meanwhile, in Canada,  a CKI-led consortium called Black Tusk Highway Group is battling two rivals for an expansion project on the 100km  Sea-to-Sky Highway, which will double the number of lanes on the  road corridor between Vancouver and the ski resort of Whistler.

With construction  scheduled to start early next year, the project is expected to be awarded in the fourth quarter of this year.

Costing C$130 million (HK$779.94 million),  the expansion work is scheduled for completion in 2007, before  the 2010 Winter Olympics in Whistler.

A CKI spokeswoman declined to comment on projects that had yet to materialise.

However, CKI group managing director Kam Hing-lam said last week that the group was poised for further acquisitions.

He  said CKI wanted to add transport, electricity and water assets  in its preferred overseas markets of Australia, China,  Britain, Europe and North America.

A prime example is the northern England gas distribution project, which is CKI's biggest overseas investment to date. CKI made the acquisition with its partners, Li Ka-shing (Overseas) Foundation and British water firm United Utilities.



CKI eyes Australian project