Cheung Kong Infrastructure hopes to raise $10 billion through separate listing
Cheung Kong Infrastructure Holdings (CKI) is expected to sell almost all of its 50 per cent interest in Australian power distributors for more than $10 billion as part of a separate asset listing that moved closer yesterday after concessions on energy price cuts.
Uncertainty over the future profitability of CitiPower of Melbourne, Powercor Australia of regional Victoria and ETSA Utilities of South Australia - equally owned with Hongkong Electric Holdings - was removed yesterday after an energy regulator stipulated far milder cuts in tariffs CitiPower and Powercor can charge over the next five years.
Sources close to the listing said CKI was pressing ahead with the planned sale of 49 per cent of its 50 per cent stake in the assets to a newly formed vehicle, an investment trust called Spark Infrastructure to be listed in Australia.
The sources said CKI aimed to offload the interests for 'slightly above $10 billion' through the stake sales and assume a minority shareholding in Spark.
Despite the planned sales, CKI would retain a tight grip on the assets through its remaining 1 per cent stake and the remaining 50 per cent holding held by Hongkong Electric.