CK Hutchison falls on plan to sell "economic benefits" to affiliates
03/09/2018 04:30
** Shares of CK Hutchison Holdings Ltd 0001.HK falls as
much as 1.4 pct to HK$88.25, the lowest since Aug. 24, after the
conglomerate plans to sell economic interest in infrastructure
assets to affiliates in the latest group restructuring
** The stock trims losses to HK$88.75, still down 1.9 pct
and heading for the worst day since Aug. 23
** CK Infrastructure 1038.HK , Power Assets 0006.HK and
CK Asset 1113.HK will pay $2.75 billion to CK Hutchison for
the "economic benefits" that includes dividends and other
payments to be received from the infrastructure assets
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** The assets include Canada's off-airport car park provider
Park'N Fly, England's water and sewerage firm Northumbrian
Water, natural gas distributor Australian Gas Networks,
England's gas distributor Wales & West Gas Networks, UK Rails,
and Netherlands' energy-from-waste firm Dutch Enviro Energy
** The deal allows the firms to earn a reasonable and stable
return in accordance to the performance of the infrastructure
assets portfolio
** CK Hutchison says will use the proceeds to finance its
purchase of an additional stake in Italian venture Wind Tre
S.p.A. from Veon VON.AS
** Shares of CK Asset rises 0.6 pct, CK Infrastructure gains
0.4 pct, while Power Assets slides 0.4 pct
** Hong Kong benchmark index .HSI falls 0.8 pct
(Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)