CKH Holdings (00001) and CKI Holdings (01038) have jointly announced that a share purchase agreement has been entered into for the sale of UK Power Networks Holdings Limited. The agreement was finalized after trading hours on February 25, 2026, in Hong Kong, London, and Paris, and before trading commenced on February 26, 2026. The sellers are indirect wholly-owned subsidiaries of CKI Holdings, POWER ASSETS (00006), and CK ASSET (01113). The buyer is Engie UK 2026 Limited.

Currently, the issued share capital of the target company is held 40% by the CKI Holdings subsidiary, 40% by the POWER ASSETS subsidiary, and 20% by the CK ASSET subsidiary. The total cash consideration for CKI Holdings, covering the sale of its shares and related shareholder debt instruments, amounts to a base price of £4.2192 billion, subject to customary adjustments under the agreement. POWER ASSETS will receive an identical base consideration of £4.2192 billion. CK ASSET's base consideration for its stake is £2.1096 billion.

Under the terms of the agreement, each seller has agreed to individually sell its respective holdings, and the buyer has agreed to purchase all the shares being sold. The combined transaction represents 100% of the target company's issued share capital.

The primary business of the target group is electricity distribution in London, the South East, and East of England. It owns and operates the electricity networks in these regions. The group's total network spans approximately 192,000 kilometers, covering an area of over 29,000 square kilometers and serving 8.5 million household and business customers. Additionally, through UK Power Networks Services, the group operates a non-regulated business that includes designing, building, owning, and operating private electricity networks for public and private sector clients.

Since CKI Holdings initially acquired its stake in the target group in 2010, the business has undergone a steady transformation and is now a leading electricity distribution network operator in the UK. It has consistently provided stable financial contributions to both CKI Holdings and CKH Holdings. The target group has experienced significant growth throughout the period of CKI's investment. The Board of CKI Holdings believes the divestment will allow the group, as part of CKH Holdings, to realize its investment at an attractive valuation, generating substantial accounting gains and cash proceeds for future investments or acquisitions.