"Hutchison Whampoa" sells UK power grid business, Li Ka-shing cashes out over 110 billion HKD

On February 26, Cheung Kong Infrastructure, Power Assets, and CK Asset Holdings, three Hong Kong-listed platforms under the CKH Group, simultaneously announced on the Hong Kong Stock Exchange that they have signed an agreement with Engie UK 2026 Limited, a subsidiary of the French utility company Engie, to sell 100% of UK Power Networks Holdings Limited, the UK electricity grid operator. The total transaction price is approximately £10.548 billion, equivalent to over HKD 110 billion, and the payment will be made in full cash.

According to the transaction arrangement, Cheung Kong Infrastructure and Power Assets each hold a 40% stake in the target company, with a corresponding transaction price of about £4.219 billion (around HKD 44.3 billion) each; CK Asset Holdings holds a 20% stake, with a transaction price of approximately £2.11 billion (about HKD 22.15 billion). The three parties will fully exit their investments.

Under the transaction framework, all three companies clearly state in their announcements that the core logic of this deal is to optimize global asset allocation, raise significant funds, and support future business development and shareholder returns.

Following the announcement, the stock prices of the three companies rose slightly. As of the time of reporting, Cheung Kong Infrastructure increased by 2.81%, to HKD 65.9 per share; Power Assets rose by 2.53%, to HKD 62.85 per share; CK Asset Holdings increased by 1.67%, to HKD 47.42 per share.

As the seller in this transaction, all three companies are core asset operation platforms within the CKH Group, each with different business focuses but closely integrated. Cheung Kong Infrastructure specializes in global energy infrastructure and transportation investments, covering power, water, and gas sectors, serving as the main vehicle for CKH’s overseas infrastructure assets; Power Assets focuses on power generation, transmission, and related infrastructure investments, with stable operational experience in Hong Kong and overseas power markets, and has long-term joint investments with Cheung Kong Infrastructure in overseas energy projects; CK Asset Holdings concentrates on real estate development, property investment, and infrastructure-related assets, serving as an important operational platform for CKH’s domestic and overseas real estate and diversified industries.

The UK Power Networks being sold is a leading distribution network operator in the UK, with core assets covering London, Southeast England, and Eastern regions, providing distribution services to approximately 8.5 million households and businesses. It also engages in unregulated activities such as private grid design and construction, making it a key component of the UK energy infrastructure system.

In terms of performance, publicly available information shows that for the fiscal year ending March 31, 2025, UK Power Networks reported a pre-tax profit of approximately £1.149 billion (about HKD 12.179 billion), a year-on-year increase of 146.04%; after-tax profit was about £853 million (around HKD 9.042 billion), up 173.4% year-on-year.