CK Hutchison Holdings Limited (CKHH, stock code 1) and CK Infrastructure Holdings Limited (CKI, stock code 1038) jointly announced a definitive agreement to dispose of 100% of the issued share capital of UK Power Networks (the Target) through their respective subsidiaries after trading hours on 25 February 2026 and before trading hours on 26 February 2026 in Hong Kong, London, and Paris.
CKI Sub, PAH Sub, and CKA Sub (wholly owned subsidiaries under the CKI, Power Assets Holdings Limited, and CK Asset Holdings Limited groups, respectively) agreed to sell their respective stakes, comprising 40%, 40%, and 20% of the Target’s issued share capital. The Purchaser, fully owned by Engie S.A., will acquire these shares along with related shareholder debt instruments.
According to the announcement, the base consideration for the CKI portion amounts to GBP4.22 billion (approximately HK$44.30 billion), subject to customary adjustments. CKI expects to record a gain of around HK$14.50 billion arising from its disposal. The Target’s net assets were valued at GBP5.58 billion (about HK$58.63 billion) as of 31 March 2025. CKI stated that the proceeds from the transaction are intended to fund future investments or acquisitions.
The transaction constitutes a major and connected transaction for CKI under the Listing Rules, requiring announcement, shareholder approval, and other disclosures. For CKHH, it is deemed a discloseable and connected transaction also subject to compliance measures, including an extraordinary general meeting and independent shareholders’ approval.
Completion remains conditional on several approvals, including clearance under the UK’s National Security and Investment Act 2021 and approval by relevant shareholders. If these conditions are not met by the agreed longstop date, the disposal may not proceed. Shareholders and potential investors are advised to exercise caution regarding any dealings in the securities of CKH Holdings and CK Infrastructure.
Comments