CKI-led sale of UK Rails approved, expected to complete this month

The consortium led by CK Infrastructure (1038) said on Wednesday it has got the approval for the sale of the British rolling stock company UK Rails (Eversholt Rail) from the UK's regulator, the Competition and Markets Authority, and it's expected to bring a substantial gain following the completion of the deal this month.

UK Rails is currently jointly owned by CK Infrastructure, CK Asset (1113), Power Asset (0006), and CK Hutchison (0001), with CK Infrastructure holding 65 percent of its shares.

In August last year, Victor Li Tzar-kuoi, chairman of CK Asset, said in the firm's interim report that UK Rails, a joint venture company of the CK conglomerate, entered into an agreement to divest UK Rails, adding that this transaction would unlock the potential value of the assets.

Li also commented in July on the related deal that " buying and selling allow businesses to grow. We never like borrowing, so we consistently accumulate funds to facilitate larger transactions."

UK Rails (Eversholt Rail) is one of the major rolling stock leasing companies in the UK, and it was acquired by CK Infrastructure and CK Hutchison for £2.5 billion (HK$29.3 billion) in 2015, with both accounting for 50 percent stakes.

The rolling stock firm performed well in the past 10 years, offering stable cash flow, CK Infrastructure said, adding that it remained unaffected by the decline in rail passenger demand even during the COVID-19 pandemic.