HONG KONG--The European Commission said Wednesday it approved a
consortium led by Hong Kong billionaire Li Ka-shing's utility arm
Cheung Kong Infrastructure Holdings Ltd. (1038.HK) to buy U.K. gas
distributor Wales & West Utilities Ltd. for US$1 billion.
The decision clears the way for the consortium to complete the
deal, which will more than double CKI's share of the U.K.'s gas
distribution market to 25% of the served population. The CKI-led
consortium bought another U.K. gas distributor, Northern Gas
Networks Ltd., in 2005.
The deal is expected to be completed by the middle of October,
said a spokeswoman for CKI's controlling shareholder, Cheung Kong
(Holdings) Ltd., without elaborating.
In July, the consortium said it agreed to buy MGN Gas Networks
(UK) Ltd., which owns Wales & West Utilities, from a number of
investment and fund management firms, including Macquarie Global
Infrastructure Funds 2 SARL.
The partners in the consortium are CKI and Cheung Kong
(Holdings) Ltd., CKI affiliate Power Assets Holdings Ltd., and Li
Ka Shing Foundation Ltd., with the first three each holding a 30%
stake in the consortium. Li Ka Shing Foundation will hold the
remaining 10% stake, the consortium said in an earlier
statement.
Write to Joanne Chiu at joanne.chiu@wsj.com
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