CKH Holdings and its affiliated companies have announced a major transaction involving the sale of UK Power Networks. The deal is valued at over HK$110 billion.
On the morning of February 26, Hong Kong-listed entities including CKH Holdings, Cheung Kong Infrastructure Holdings, CK Asset Holdings, and Power Assets Holdings disclosed details of the sale. The issued share capital of UK Power Networks was held 40% by Cheung Kong Infrastructure, 40% by Power Assets Holdings, and 20% by CK Asset Holdings. The consideration payable to these sellers for their shares and shareholder debt instruments amounts to approximately £4.219 billion, £4.219 billion, and £2.109 billion respectively. The total consideration exceeds HK$110 billion. Under the share purchase agreement, the sellers have agreed to divest 100% of UK Power Networks' issued share capital.
The buyer and its guarantor are ultimately wholly owned by French utility company Engie. Market analysis indicates the enterprise value of this transaction is estimated at £16.838 billion, making it one of the largest deals in the global utilities sector in recent years. Engie is a key player in energy transition, aiming to accelerate the shift toward a carbon-neutral economy. The group employs over 90,000 people across 30 countries and covers the entire energy value chain.
Market information reveals that when the Cheung Kong Group acquired UK Power Networks in 2010, the enterprise value and equity value were £5.775 billion and £2.553 billion respectively. If the transaction completes by June 30, 2026, the projected enterprise value will be £16.838 billion with an equity value of £11.078 billion. UK Power Networks has distributed £4.4 billion to shareholders over the years, generating a total cash return exceeding six times the original investment for the Cheung Kong Group.
Since its acquisition in 2010, UK Power Networks has transformed into a leading electricity distribution network operator in the UK, consistently providing stable financial contributions. The board of Cheung Kong Infrastructure believes the divestment allows the group to realize its investment at an attractive valuation, generating substantial accounting gains and cash proceeds for future investments or acquisitions.
UK Power Networks owns and operates grids across London, Southeast England, and Eastern England, with a total network length of approximately 192,000 kilometers serving over 8.5 million households and businesses. The company also operates non-regulated businesses through UK Power Networks Services.
The transaction is expected to be completed by the end of June 2026, subject to conditions including acceptance of Engie's filing under the UK National Security and Investment Act 2021 and shareholder approvals from the selling companies.
During morning trading, CKH Holdings and its affiliates saw share price increases. CKH Holdings rose 3.06% to HK$63.9, while Cheung Kong Infrastructure gained 2.65% to HK$65.8.