Independent shareholders of a consortium led by CK Infrastructure (1038) have approved the sale of UK Power Networks to French electric utility Engie in a £16.84 billion (HK$176.8 billion) deal.
The consortium included CK Infrastructure, Power Assets (0006), and CK Asset (1113), which hold 40 percent, 40 percent, and 20 percent of the UK electricity operator's shares.
Speaking at the special general meeting, Andrew Hunter, co-managing director of CKI, who also chairs Power Assets and is an executive director of CK Hutchison (0001), said the group had no initial intention to sell UKPN, but was approached by a buyer with a highly attractive offer, which the group believes is in the best interests of shareholders.
Asked whether a special dividend would be declared, Hunter said the board would consider the matter after the transaction is completed. He added that in today’s volatile environment, “cash is king,” and that a stronger cash position would provide the group with greater flexibility and opportunities while further strengthening its financial footing.
The company said the disposal, together with dividends received from UKPN over the years, would generate a total cash return of nearly six times its original investment in 2010.
UKPN distributes electricity across London, the South East, and the East of England.
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