Tuesday, May 20, 2008

HK Electric to buy stake in Wellington electricity network

Hong Kong Electric Holdings Ltd will buy a 50% stake of a unit of Cheung Kong Infrastructure Holdings Ltd (CKI), the largest publicly listed infrastructure company in Hong Kong, to acquire Wellington electricity distribution assets from Vector Ltd, New Zealand's largest electricity and gas supplier, according to a statement jointly released by the two Hong Kong-listed companies on Monday.

CKI, which holds 38.87% of Hong Kong Electric, said late April it will spend NZ$785 million (US$609 million) to buy out Wellington Electricity Distribution Network Holdings Ltd. The deal is still subject to approval from Vector's shareholders as well as New Zealand's regulators.

The acquisition is expected to cost about HK$2.34 billion.

Hong Kong Electric and CKI will operate the electricity network through a 50:50 joint venture, according to executives from the two companies.

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