Victor Li controlled companies say UK power distribution asset has attracted buying interest
- The preliminary expression of interest has yet to be ‘properly analysed’, companies say
- UKPN is 40 per cent owned by CK Infrastructure, 40 per cent by Power Assets and 20 per cent by CK Asset
Three companies controlled by tycoon Victor Li Tzar-kuoi have received a notice of interest from unnamed parties to buy one of the UK’s largest power distribution companies that they jointly own.
The preliminary expression of interest has yet to be “properly analysed,” Cheung Kong Infrastructure Holdings, Power Assets Holdings, CK Asset Holdings and CK Hutchison Holdings said in a joint filing to Hong Kong’s bourse late on Friday, without naming the potential buyers.
“The companies have noted recent media speculation regarding a possible transaction involving the companies’ interests in UK Power Networks Holdings,” they said. “The companies confirm that parties have expressed an interest in respect of a possible purchase of part or all of the companies’ interests in UKPN, which has yet to be properly analysed.”
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“There can be no certainty that any agreement will be entered into or that the companies will proceed any further,” they added.
The announcement came after a Bloomberg report on Friday said that a consortium led by Macquarie Group and KKR & Co was in “advanced talks” to buy UKPN, citing people familiar with the matter who declined to be named.
The bidding group also includes APG, China Investment Corp, Ontario Teachers’ Pension Plan Board and PSP Investments, the report said, adding that the potential buyout could value UKPN at as much as 15 billion pounds (US$20 billion) and an agreement may be reached in the “coming weeks”.
UKPN is 40 per cent owned by CK Infrastructure, 40 per cent by Power Assets and 20 per cent by CK Asset. CK Hutchison holds 75.67 per cent of CK Infrastructure.
UKPN is one of the UK’s largest power distributors, comprising three regional networks with a distribution area that covers 8.3 million consumers in London, southeast and eastern England, with power lines spanning around 190,000 kilometres.
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CK Infrastructure shares gained 5 per cent to HK$50.25 on Friday, their largest move in over a year according to Bloomberg data. Power Assets closed 1 per cent higher at HK$49.05, while CK Asset slid 0.9 per cent to HK$48.45.
Formerly owned by France’s Electricite de France and CSW Investments, UKPN was acquired in 2010 by Li’s companies for 5.77 billion pounds.
