25th July 2012
A consortium led by Hong Kong business tycoon Li Ka-shing is set to buy UK Gas Company Wales and West Utilities for £645 million ($1 billion), this acquirement will add to Li’s growing portfolio of Energy and Utility businesses in the UK.
The billionaire is continuously expanding his UK business portfolio and has businesses in various sectors including telecommunications, ports, energy and utilities and Li’s companies are continuously looking abroad for possible acquisitions to broaden their revenue base.
The consortium consists of Cheung Kong (Holdings) Ltd, Li Ka Shing Foundation Ltd, Cheung Kong Infrastructure Holdings Ltd and Power Assets Holdings Ltd. The deal is expected to complete at the end of September subject to European Commission approval.
Kam Hing-lam, group managing director of Cheung Kong Infrastructure, said “we are pleased to have the opportunity to acquire another high-quality asset, which is poised to extend our growth momentum and generate recurring profit contributions similar to that of our other infrastructure projects”.
Gas Distribution Network (GDN), Wales and West Utilities operate in Wales and the Southwest of England have a 7.4 million strong customer base over an area covering 42,000 square kilometres, which equates to nearly one-sixth of the UK.