UK, even now, is a good bet for Li Ka-shing
23/09/2016 04:25
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Quentin Webb
HONG KONG, Sept 23 (Reuters Breakingviews) - The Hong Kong
tycoon is reportedly eyeing $14 bln of gas grids. Never mind
Brexit uncertainties or the veto of Li's British mobile merger.
UK infrastructure offers solid, stable returns, and this could
be a good use of the $7 bln cash pile stranded at Li's Power
Assets unit.
Full view will be published shortly.
CONTEXT NEWS
- Hong Kong tycoon Li Ka-shing is putting together a bid for
a majority stake in the gas-distribution business of Britain's
National Grid, the Financial Times reported on Sept. 22, citing
people close to the talks.
- The auction is expected to value the business at 11
billion pounds ($14 billion) including debt, the FT reported.
First-round bids are due on Sept. 23, it added.
- Li's Cheung Kong Infrastructure is leading one group of
bidders, the newspaper said. Rivals include a consortium led by
Canada Pension Plan Investment Board, backed by sovereign wealth
funds from Abu Dhabi and Kuwait, and a Macquarie-led team
supported by Allianz, Dalmore Capital and China Investment Corp.
- National Grid, which operates gas and electricity
networks, said in November that it would seek to sell a majority
stake in the unit, which operates four of Britain's eight
regional gas distribution networks.
- CKI and Power Assets, another Li company, already own
controlling stakes in two of the other British networks,
Northern Gas Networks and Wales and West Gas Networks. CKI is
the largest shareholder of Power Assets.
- For previous columns by the author, Reuters customers can
click on WEBB/
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Li Ka-shing planning bid for stake in National Grid gas unit-FT
urn:newsml:reuters.com:*:nL3N1BY34R
National Grid to sell majority stake in British gas distribution
business urn:newsml:reuters.com:*:nL3N1352OL
FT story http://www.ft.com/cms/s/0/0d8887b4-80a2-11e6-8e50-8ec15fb462f4.html?siteedition=intl#axzz4L2SddUyt
National Grid Nov. statement http://investors.nationalgrid.com/~/media/Files/N/National-Grid-IR/results-centre/half-year-results-statement-2015-16.pdf
BREAKINGVIEWS - China backlash bandwagon rolls over Li Ka-shing
urn:newsml:reuters.com:*:nL3N1AS1KB
BREAKINGVIEWS - UK deal veto would be big setback for Li
Ka-shing urn:newsml:reuters.com:*:nL3N1811GG
BREAKINGVIEWS - Playground weaklings give Li Ka-shing bloody
nose urn:newsml:reuters.com:*:nL3N13K1E3
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(On Twitter https://twitter.com/qtwebb Editing by Una Galani
and Katrina Hamlin)
((quentin.webb@thomsonreuters.com;)(Reuters
Messaging:)(quentin.webb.thomsonreuters.com@reuters.net))
Keywords: NATIONAL GRID DIVESTITURE/BREAKINGVIEWS