Li Ka-Shing's Cheung Kong Infrastructure offers $16.5 billion to buy Power Assets

Hong Kong billionaire Li Ka-shing and his son Victor Li, chairman of Cheung Kong Infrastructure Holdings.
Hong Kong billionaire Li Ka-shing and his son Victor Li, chairman of Cheung Kong Infrastructure Holdings.PHOTO: BLOOMBERG

HONG KONG (BLOOMBERG) - Cheung Kong Infrastructure Holdings has offered US$11.6 billion (S$16.5 billion) to buy Power Assets Holdings in stock as Mr Li Ka-shing seeks to combine his utility businesses for further expansion.

Cheung Kong Infrastructure will offer 1.04 shares for every Power Assets share not owned by Mr Li's companies, according to a Hong Kong exchange statement on Tuesday (Sept 8). Cheung Kong Infrastructure will also pay out a conditional special interim of HK$5 (92 Singapore cents) a share, it said.

Hong Kong's richest man is reshuffling his sprawling business empire for the second time this year as he looks for acquisitions worldwide. The new company will operate assets in utilities, waste management and transportation in China, Europe and Australia.

"The stronger balance sheet and significant cash balance will enable CKI to better compete for infrastructure projects given the capital intensive nature of the infrastructure industry," the companies said in the statement.