S&P Global Ratings expects CK Infrastructure Holdings (HKG:1038) and Power Assets Holdings (HKG:0006) to benefit from significant net cash after the planned sale of UK Power Networks Holdings, according to a recent release.

Each company will receive about HK$44 billion from the deal, notably greater than their net debt of HK$16 billion and HK$2.2 billion, respectively, S&P said.

The companies could seek more investment opportunities given the additional cash, with eyes set on the regulated utilities sector and businesses with long-term market contracts, the rating agency said.

The rating agency believes regulated utilities have better earnings stability compared to other sectors in which the companies have invested, including business services and unregulated power and gas.

Still, S&P expects the companies to keep their controlled strategies despite having greater resources to allocate.

The companies could also look into special dividends as a way to deploy the cash, especially given similar moves from Power Assets in the past, S&P said.

The sale will lessen the companies' operating profits, with UK Power Networks comprising an average of 32% of CK Infrastructure's profits and 35% of Power Assets' in recent years.

The sale could also trigger a moderate rise in earnings volatility for the companies, with the share of earnings from regulated segments dropping by eight to 10 percentage points, S&P said.