CKI to buy back shares when necessaryBusiness | 12 May 2021 2:51 pm
Chairman Victor Li Tzar-kuoi said at CK Infrastructure's (1038) annual general meeting today that the company will repurchase shares when necessary and the share price is undervalued.
If calculated as a multiple of the regulatory asset value (RAV) of a recent sale of a UK company, the value of the UK water business, electric power and gas company held by CKI and the equity of Power Asset (0006) held by CKI is almost equal to CKI's current stock price, Li said.
CKI’s other businesses in the UK such as UK Rails and Seabank Power, other businesses in Australia, New Zealand, Europe, Canada, the United States, Hong Kong and mainland China have not been taken into account. This showed that the current share price is far underestimated, which has not fully reflected the value of the company's assets.
A shareholder asked if CK Asset (1113)’s acquisition of infrastructure assets would be confused with CKI’s positioning. Li said the positioning of the two companies is completely different. CKI is a pure infrastructure investment company, while CK Asset focuses on real estate.