CKI pockets $1.1b in Iberwind sale

Shares of CK Infrastructure (1038) rose yesterday after it said it would divest from Iberwind, a wind energy developer and operator in Portugal, making a gain of HK$1.1 billion.

Chairman Victor Li Tzar-kuoi said: "This transaction is a very rare move for CKI, as trading assets is not our policy."

Iberwind was acquired by CKI and its associate company, Power Assets (0006) in 2015 for 288 million euros (HK$2.66 billion). Each holds a 50 percent interest in the business. Iberwind has over 320 wind turbines and an installed capacity of 726MW.

The transaction would result in a gain of about HK$1.1 billion for CKI (including its share of Power Assets) and about HK$800 million for Power Assets, the company said. CKI expects the transaction will take place in the fourth quarter of this year.

Iberwind operates under a two-phase feed-in tariff regime with an initial 15-year fixed tariff followed by a 7-year cap and floor price protection. Starting from 2020, the tariff will start transitioning out of the high fixed tariff phase and will revert to the merchant pool price from 2027 onwards, which relatively more volatility, CKI said.

CKI closed 0.97 percent higher at HK$41.85 yesterday.