(July 30, 2010) — After tough competition with a consortium comprising sovereign-wealth fund Abu Dhabi Investment Authority, Macquarie and the Canada Pension Plan, tycoon Li Ka-shing emerged as one of the UK’s biggest infrastructure owners after buying Electricite de France SA’s (EDF) British electricity network business for $9.1 billion.
The process — which has dragged on for more than a year due to delays by a change in EDF management, British regulatory rulings, and difficulties with pension trustees — ended as being one of the largest deals in Europe by a north Asian company, ranking behind the $14.3 billion Chinalco paid for a 12% stake in Rio Tinto two years ago.
Hong Kong 82-year-old billionaire Li Ka-shing $9.1 billion deal for three UK power grids owned by EDF makes him one of the largest owners of Britain’s infrastructure. His assets range from the Port of Felixstowe to Cambridge Water.
According to the Wall Street Journal, the acquisition of assets of EDF, the world’s second-largest utility, will be spread across a consortium of buyers controlled by Li — Cheung Kong Infrastructure Holdings Ltd. will take 40%, Hongkong Electric Holdings Ltd. another 40% and the Li Ka-Shing Foundation 20%.
Li, one of the richest men in Asia, now controls about a quarter of the UK’s power distribution — around 10% of gas supply and less than 5% of water supply.
The deal represents Li’s fifth investment in the UK and follows his efforts to increase ownership of overseas utilities as a result of facing difficulties expanding in Hong Kong.
To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742