CK Infrastructure considers sale of interests in European assets

  • The Hong Kong-listed company owns energy, transport and water utilities around the world
PUBLISHED : Tuesday, 20 November, 2018, 10:45pm
UPDATED : Wednesday, 21 November, 2018, 12:38am

CK Infrastructure Holdings, which owns energy, transport and water utilities globally, is considering selling minority stakes in some of its European assets to a new investment company which would then be listed on the London Stock Exchange.

If the proposal proceeds, it is not expected to have a material impact on its existing portfolio of infrastructure assets, the Hong Kong-listed company said in a filing on Tuesday.

CK Infrastructure may be a minority shareholder in the new investment company after completion of the listing.

The announcement comes as the company plans to list some UK assets via a London initial public offering, Bloomberg said in a report citing people familiar with the matter.

Why monopoly should no longer be CK group’s game

The proposed IPO will enable CK Infrastructure to replenish capital after an acquisition spree while adding firepower to go after bigger deals in the future, according to the September report.

The company’s cash and bank deposits amounted to HK$9.6 billion (US$1.3 billion) against total debt of HK$31.34 billion (US$4 billion) as of the end of June, its interim report showed. The UK, Australia and continental Europe were the top three markets by revenue contribution from infrastructure investments.

CKI engages in gas and power distribution, power generation, rolling-stock leasing, water supply and sewage treatment in Britain, and gas and power distribution and transmission in Australia.