By Joanne Chiu
HONG KONG--A consortium led by Hong Kong billionaire Li
Ka-shing's flagship Cheung Kong (Holdings) Ltd. (0001.HK) has
agreed to buy U.K. gas distribution company MGN Gas Networks (UK)
Ltd. for GBP645 million (US$781 million), the companies in the
consortium said in a joint statement Wednesday.
The partners in the consortium are Cheung Kong, its units Cheung
Kong Infrastructure Holdings Ltd. (1038.HK) and Power Assets
Holdings Ltd. (0006.HK), and Li Ka Shing Foundation Ltd.
The consortium agreed Wednesday to buy MGN Gas Networks from a
number of investment and fund management firms including Macquarie
Global Infrastructure Funds 2 SARL, the statement said.
Cheung Kong, Cheung Kong Infrastructure and Power Assets will
each hold 30% stake in the joint venture company, with Li Ka Shing
Foundation holding the remaining 10% stake, it added.
MGN Gas Networks owns in Wales & West Utilities Ltd, which
is principally engaged in the management of gas transportation
assets, gas distribution and meter work services throughout Wales
and the South West of England.
The regulated distribution network area supplies 7.4 million
customers within an area of 42,000 square kilometers, or almost
one-sixth the area of the U.K., the statement said, with the total
length of main gas pipeline being 35,000 kilometers.
Write to Joanne Chiu at joanne.chiu@dowjones.com
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