Li Ka-shing Sells Off UK Assets Again! Cheung Kong Group's Three Companies Cash Out Over HKD 100 Billion Draws Attention

CK Infrastructure Holdings, Power Assets Holdings, and CK Hutchison Holdings jointly announced that they have reached an agreement to sell all their shares in UK Power Networks Holdings Limited, a UK electricity grid company under the French utility company Engie. The transaction involves over HKD 110 billion, marking a significant asset adjustment by the Li Ka-shing family in the UK energy sector.

According to the announcement, the three companies hold 40%, 40%, and 20% stakes in UK Power Networks respectively. The sale price exceeds 8% of the HKD 57.7 billion paid in 2010. CK Infrastructure Holdings stated that upon completion of the transaction, it expects to realize an actual profit of approximately HKD 14.5 billion, while Power Assets Holdings and CK Hutchison Holdings are respectively projected to gain HKD 10.7 billion and HKD 8.4 billion. These funds will be used for future investments or acquisitions.

UK Power Networks is a leading distribution network operator in the UK, serving London, Southeast England, and Eastern regions, providing electricity to 8.5 million households and businesses. The company’s total grid length is 192,000 kilometers, covering an area of over 29,000 square kilometers. Financial data shows that for the fiscal year ending March 31, 2025, the company’s pre-tax profit reached HKD 12.0677 billion, with a total asset value of approximately HKD 58.6268 billion.

The significant growth in performance is mainly due to two factors: first, the company recovered fees that were not fully charged due to higher-than-expected inflation; second, it received substantial rewards related to the RIIO-ED1 price regulation. These rewards are paid with a two-year delay, providing important support for revenue growth in the 2025 fiscal year.

This sale is not the Li Ka-shing family’s first adjustment of overseas assets. As a key part of its business empire, CK Infrastructure Holdings owns several infrastructure investments in the UK, including Northumbrian Water and Northern Gas Networks. The group’s operations also extend to Australia, New Zealand, Europe, and Canada, involving gas distribution, electricity distribution, water supply, wastewater treatment, and renewable energy sectors.

According to the Financial Times, the Li Ka-shing family once controlled about a quarter of the UK electricity distribution market, nearly 30% of the natural gas supply market, nearly 7% of the water supply market, and over 40% of the telecommunications market. The sale of UK Power Networks shares is another important move in its ongoing effort to optimize its overseas asset portfolio.