HK’s CK Infrastructure said to weigh listing of UK assets

Hong Kong
Residential and commercial buildings are seen from Victoria Peak in Hong Kong, China, on Monday, Sept. 11, 2017. Photographer: Billy H.C. Kwok/Bloomberg Photo by Bloomberg

Hong Kong tycoon Victor Li’s CK Infrastructure Holdings Ltd., which owns energy and water utilities globally, is considering listing some U.K. assets through a London initial public offering, people with knowledge of the matter said.

CK Infrastructure is speaking with investment banks about the listing of certain U.K. holdings through a potential multi-billion dollar fund, according to the people, who asked not to be identified because the information is private. The company is still discussing the entity’s structure and which assets to include and may decide not to pursue the transaction, they said.

The Asian investor built a stable of British infrastructure assets ranging from sewage to gas to rail over the last decade. A group led by CK Infrastructure in 2010 acquired the U.K. power networks from Electricite de France SA for 5.8 billion pounds ($7.6 billion) and a year later bought utility Northumbrian Water for 2.4 billion pounds. In 2015, CK Infrastructure acquired Eversholt Rail for 2.5 billion pounds to gain control of almost a third of the U.K.’s passenger trains.

A representative for CK Infrastructure didn’t respond to requests for comment.

Some assets are jointly held with Power Assets Holdings Ltd., a separately-listed arm of CK Infrastructure. Li’s flagship conglomerate CK Hutchison Holdings Ltd. CK Asset Holdings Ltd., which is also backed by Li’s family, has made infrastructure acquisitions of its own in recent years in Australia, Germany and Canada.