Power Assets Holdings Limited (006) (“PAH”) announced that its indirect wholly-owned subsidiary (“PAH Sub”), alongside CK Infrastructure Holdings Limited (1038) (“CKI”) and CK Asset Holdings Limited (1113) (“CKA”), has entered into a share purchase agreement on February 25, 2026, for the sale of 100% equity in UK Power Networks Holdings Limited (“UKPN” or the “Target”). Under the agreement, PAH Sub holds 40% of UKPN’s issued share capital, CKI Sub holds 40%, and CKA Sub holds 20%. ENGIE S.A. (“Engie”), through its wholly-owned entities, will purchase the shares and corresponding shareholder debt instruments.

According to the announcement, the disposal constitutes a major transaction for PAH. Subject to final adjustments, the base consideration attributable to PAH Sub’s disposal is GBP4.22 billion (approximately HK$44.30 billion). A net gain of about HK$10.70 billion is expected from PAH Sub’s portion of the transaction, though the actual figure will depend on completion adjustments, transaction costs, and prevailing exchange rates.

UKPN owns and operates electricity distribution networks across London, the South East, and the East of England, covering some 192,000 kilometers of network and serving 8.50 million homes and businesses. Its audited consolidated net asset value was approximately GBP5.58 billion (about HK$58.63 billion) as of March 31, 2025.

PAH noted that the disposal will allow for the monetization of a long-term investment at an attractive valuation, yielding significant accounting gains and proceeds to pursue new investment opportunities. Since its 2010 acquisition, PAH has witnessed UKPN’s focus on delivering stable financial contributions in the UK electricity distribution sector.

The transaction remains subject to regulatory and shareholder approvals, including compliance with Hong Kong’s Listing Rules. The announcement states that, should certain conditions not be met, there is a possibility the disposal may not proceed. Shareholders and potential investors are advised to exercise caution when dealing in PAH’s securities.

For additional details, refer to the full announcement issued by Power Assets Holdings Limited on February 26, 2026. The circular containing further information on the transaction and a notice of the General Meeting is expected to be dispatched on or before April 30, 2026.