KKR to take stake in CK Hutchison's British utility firm in $1 bln deal

CK Infrastructure Holdings

14/07/2022 14:54

July 14 (Reuters) - Hong Kong's CK Hutchison Holdings
 0001.HK  said on Thursday investment giant KKR & Co  KKR.N 
will invest 867 million pounds ($1.02 billion) for a 25% stake
in its British utility company, Northumbrian Water Group.
    The Durham-based company, which supplies water and sewerage
services to homes in England, is jointly owned by CK Hutchison
and its affiliated companies CK Asset  1113.HK  and CK
Infrastructure  1038.HK  - all owned by Hong Kong tycoon Li
Ka-shing.
    The deal comes on the heels of a failed bid by KKR for CK
Infrastructure-owned UK Power Networks, which Financial Times
reported https://on.ft.com/3nECtWJ in early July, was due to a
spike in Britain's inflation.
    CK Hutchison expects to gain HK$1 billion ($127.39 million)
on the Northumbrian deal, while CK Asset and CK Infrastructure
will receive HK$500 million and HK$900 million, respectively,
according to a joint statement from the companies. (https://bit.ly/3yBJ8Gh)
    The CK-led consortium, which had bought https://reut.rs/3P9pRmt
 Northumbrian Water Group for 2.41 billion pounds in August
2011, will continue to own 75% of it after the deal with the
U.S.-based private equity giant.
    The transaction is pending approval from UK Financial
Conduct Authority, the Isle of Man Financial Services Authority
and antitrust regulators, according to the statement filed to
the Hong Kong bourse.
    It is anticipated that the KKR's investment will have
minimal impact on the day-to-day management of Northumbrian
Water Group, the companies said. 
    


($1 = 7.8499 Hong Kong dollars)

($1 = 0.8460 pounds)

 (Reporting by Savyata Mishra in Bengaluru; Editing by Shinjini
Ganguli)
 ((Savyata.Mishra@thomsonreuters.com;))