At 98 years old, Li Ka-shing has once again triggered the sell button. On August 11, news emerged that CKH HOLDINGS has appointed Morgan Stanley and Barclays to sell a controlling stake in Australian clean energy firm EDL Energy, valued between 20 billion and 30 billion Australian dollars, up to approximately 166.6 billion Hong Kong dollars. Combined with three previous sales in the UK, the CKH group has cashed out up to around 183.8 billion Hong Kong dollars in a year, nearly matching the total market capitalization of one of its subsidiary, Power Assets Holdings.

Many people's first reaction is "Li Ka-shing is fleeing again." Examining these four deals reveals a different narrative: the assets are not being sold because they are deteriorating, but rather because they are still expensive and being monetized in bulk. The asset being sold now is a cash-flow machine. EDL Energy is not a burden. It operates in distributed clean energy and renewable natural gas, serving mining giants like Rio Tinto and Glencore. Its 2025 EBITDA is projected at 270 million Australian dollars, with a profit margin of 39%. Its 54 energy facilities and 836 megawatts of installed capacity have attracted a queue of buyers: Swedish firm EQT, Wall Street's Stonepeak, and Japanese investor Igneo are all conducting due diligence. The seller is not in a hurry, while buyers are scrambling for shares. This posture itself indicates that Li Ka-shing is selling in a seller's market, not a fire sale.

In four sales over the year, 167.2 billion Hong Kong dollars are already in hand. The Australian deal is still pending, but the three UK transactions have already been completed with real cash received: the UK Rails train leasing business for about 11 billion Hong Kong dollars, closed in January this year; all shares of the UK Power Networks grid for 110.75 billion Hong Kong dollars, sold to France's Engie in February; and a 49% stake in the telecom venture VodafoneThree for 45.5 billion Hong Kong dollars, sold back to Vodafone in May, with CKH's share price surging 4.13% on the announcement day. Railways, power grids, and telecoms—all essential underlying assets that Britons rely on—were all sold at valuation peaks. The group has agreed to sell its entire stake in the UK telecom business VodafoneThree, receiving a consideration of 4.3 billion pounds (approximately 45.5 billion Hong Kong dollars), pending regulatory approvals. This means CKH HOLDINGS is expected to cash out nearly 45.5 billion Hong Kong dollars from this transaction alone. The group's four cash-out deals in a year total this scale.

Why sell? Three clear calculations are at play. The first is the regulatory calculation. Assets like power grids, energy, and telecoms cannot be easily moved. Once rules change, the return model is entirely rewritten. The UK's National Security and Investment Act has already listed these industries as sensitive. The UKPN and VodafoneThree deals both required UK national security review approval before closing. It is better to exit gracefully while the most buyers are available than to wait for the axe to fall. The second is the return calculation. How much profit the UK power grid earns is determined by the regulator Ofgem. The new price control has squeezed the allowed return on equity to 4.4%, a cut of about one-third from the previous cycle, while carbon neutrality demands billions of pounds in capital expenditure. The easy rental income business is transforming into a high-investment, low-return, heavily regulated capital-intensive asset. The allowed return on the UK grid has been reduced. The third is the cyclical calculation. Looking at the UKPN entry and exit: in 2010, during the European debt crisis when European assets were in disarray, the CKH group bought this largest UK distribution grid for 5.775 billion pounds. Sixteen years later, it sold for 10.548 billion pounds, an appreciation of 82.6%, not including 16 years of dividends. The purchase was made at the trough of a crisis, and the sale was at the peak after recovery, eating the body of the fish, not the tail.

The truth behind the retreat: not leaving landmines for the next generation. There is another background that cannot be ignored. Li Ka-shing is nearly a century old, the helm has long been passed to Victor Li, and senior advisors are gradually stepping down. For the second generation, the logic has changed: earning one more coin is not as important as leaving one less landmine. Look at where the money has gone to understand. With just the 45.5 billion Hong Kong dollars from VodafoneThree arriving, CKH HOLDINGS's pro forma cash jumped from 151.3 billion to 196.8 billion Hong Kong dollars, net debt dropped sharply by 40%, and the net debt ratio fell from 14.1% to about 8.8%. Converting immovable, sensitive heavy assets into highly liquid cash that can be deployed at any time is exactly leaving a position that can attack or defend for the next generation. The financial indicators of CKH HOLDINGS have changed.

In conclusion, Li Ka-shing, dressed in comfortable leisure wear and removing his usual black-rimmed glasses, chatted animatedly, gesturing as he spoke. What Li Ka-shing is most famous for in his life is not bottom-fishing, but his exit timing. He reduced holdings in Hong Kong before 1997, began reducing in mainland China from 2013, and exited the UK and Australia at highs in 2026. Each time, he was criticized for 'fleeing,' and each time, in hindsight, he was perfectly on point. The essence of this round of retreat is converting mature, heavy assets facing 'tightening regulation, declining returns, and geopolitical sensitivity' into a low-leverage, high-liquidity cash position. More notably, the disposal of 43 global ports valued at about 148.2 billion Hong Kong dollars is still in progress; this game is far from over. The end of a defensive retreat is often the starting point for the next offensive. When the next crisis discounts assets, the CKH group, holding nearly 200 billion in cash, is likely to be the first buyer to enter again.