CK Group, controlled by the Li Ka-shing family, has announced that a consortium led by CK Infrastructure Holdings (1038.HK) has reached an agreement with the listed French utility company Engie to sell 100% of the equity in UK Power Networks (UKPN), a UK electricity distribution business. CK Asset Holdings (1113.HK), CK Infrastructure, and Power Assets Holdings (0006.HK) jointly announced the agreement to divest UKPN, involving a base consideration of £10.548 billion (approximately HK$110.754 billion). The issued share capital of UKPN is held 20% by CK Asset, 40% by CK Infrastructure, and 40% by Power Assets. The base consideration payable to CK Asset, CK Infrastructure, and Power Assets for the sale of shares and shareholder loan notes amounts to £2.1096 billion (about HK$22.1508 billion), £4.2192 billion (about HK$44.3016 billion), and £4.2192 billion (about HK$44.3016 billion), respectively.

Market sources indicate that CK Group acquired UKPN in 2010 at an enterprise value of £5.775 billion, while the current sale values the business at an enterprise value of £16.838 billion (approximately HK$176.8 billion). The equity value at the time of acquisition in 2010 was £2.553 billion, compared to an equity value of £11.078 billion (about HK$116.3 billion) in this transaction. Since the acquisition of UKPN in 2010, shareholder distributions received have totaled £4.4 billion, resulting in a cash return of over six times for CK Group on the UKPN project.

Subject to completion of the transaction and based on currently available information, CK Asset expects to record a gain of approximately HK$8.4 billion from the sale. After accounting for CK Infrastructure's approximately 36.01% stake in Power Assets, CK Infrastructure anticipates realizing an actual gain of about HK$14.5 billion from these transactions. Power Assets expects to recognize a gain of roughly HK$10.7 billion from the divestment.

Victor Li, Chairman of CK Group, stated that with a successful track record and strong capital base, CK Group (comprising CK Asset, CK Hutchison Holdings, CK Infrastructure, and Power Assets) will continue to seek investment and development opportunities. The group will focus on both existing and newly developed markets, including the UK and other regions, targeting regulated industries, projects with long-term stable contracts, and other businesses with strong potential.