Hong Kong’s CKI said to explore bid for UK waste firm Viridor

CK Infrastructure (1038) is considering a bid for KKR-backed UK waste management firm Viridor, according to people with knowledge of the matter.

The Hong Kong-based company is in talks with potential advisers as it evaluates a possible offer, said the people, who asked not to be identified as the information is private.

KKR is exploring options for Viridor including a sale that could value the business at as much as £7 billion (HK$68.64 billion) including debt, Bloomberg News reported last month. The buyout firm is working with Barclays and UBS Group on the potential divestment, the people said.

The sale is likely to attract a number of private equity firms, according to the people. Deliberations are preliminary and CKI could decide against pursuing a bid. A representative for CKI didn’t immediately respond to queries. Spokespeople for Barclays, KKR and UBS declined to comment.

Ardley, England-based Viridor operates energy recovery facilities across the UK that generate energy from residual waste, according to its website. It also recycles plastics and took full ownership of Norway’s Quantafuel AS last year.

KKR acquired Viridor in 2020 from Pennon Group Plc for £4.2 billion including debt, which was among the biggest UK deals at that time since the outbreak of the Covid-19 pandemic.

The UK is CKI’s biggest market, accounting for about 36 percent of its net income in 2023. Its other major investments include UK Power Networks, Northern Gas Networks, Northumbrian Water and Phoenix Energy. CKI completed a second listing in London in August last year.

In 2013, CKI acquired Dutch Enviro Energy, the largest energy-from-waste company in the Netherlands, together with affiliates CK Hutchison (0001), Power Assets (0006) and the Li Ka Shing Foundation.

BLOOMBERG