Latest news with #CKInfrastructure
Sky News
2 days ago
- Business
- Sky News
Hong Kong giant CKI demands to rejoin auction of stricken Thames Water
The Hong Kong-based investor CK Infrastructure Holdings (CKI) is demanding to be readmitted to the auction of ailing Thames Water, days after its preferred bidder walked away and pushed it closer to the abyss of nationalisation. Sky News can exclusively reveal that CKI wrote to Sir Adrian Montague, the chairman of Thames Water, on Monday, seeking access to due diligence materials and insisting that it could be ready to table a formal bid to take control of the company within six weeks. In the letter, which was signed by Andy Hunter, CKI's deputy managing director, the owner of Northumbrian Water said it was keen to rejoin the Thames Water board's equity-raise process, roughly three months after submitting a multibillion pound proposal to take control. Britain's biggest water utility has been plunged back into crisis by a decision last week by KKR, the private equity firm, to abandon its status as preferred bidder. Sky News revealed that the decision was made after talks between KKR and Downing Street officials amid concerns about the political risk of bailing out a company which supplies essential services to more than 15m people. Since then, Thames Water's biggest group of creditors - accounting for approximately £13bn of its vast debt-pile - has submitted what it described as a £17bn proposal to recapitalise the company. This, the bondholders said, would comprise £3bn of new equity and more than £2bn of debt funding. Existing shareholders would be completely wiped out, while there would also be several billion pounds of debt writedowns aimed at restoring financial resilience and improving services, 2:27 The bondholders are reported to seeking immunity from prosecution for Thames Water's environmental failings, while they also want an agreement that Ofwat, the industry regulator, would drastically reduce the level of financial penalties facing the company. Last month, Thames Water was fined a record £123m over sewage leaks and the payment of dividends, with Ofwat lambasting the company over its performance and governance. Sir Adrian has run into yet more difficulties in recent days, with MPs on a key Commons select committee questioning evidence he had given to it and calling on Thames Water to claw back hundreds of thousands of pounds paid to a number of senior executives as retention payments in recent months. Under new laws, Thames Water is among half a dozen water companies which have been barred from paying bonuses this year because of their poor environmental records. 1:33 CKI owns large swathes of British infrastructure, including Northumbrian Water, Northern Gas Networks, UK Power Networks and Eversholt, the rolling-stock leasing company which has been put up for sale. Its expertise in running major companies of the scale of Thames Water would resolve a headache for ministers anxious to avoid placing the group into a special administration regime (SAR), which would incur a multibillion pound bill for taxpayers. Ministers are also said to be wary about the lack of experience in the bondholder group at running a major water company, although Sky News revealed last week that the business veteran Mike McTighe had been lined up to spearhead their interest. "This is a proven operator versus a group of financial engineers," said one person close to CKI. However, a takeover of Thames Water by CKI could yet face stiff political opposition. In April, a cross-party group of politicians wrote to Pat McFadden, the Cabinet Office minister, expressing concerns about CKI's links to Beijing. Iain Duncan Smith, the former Conservative Party leader and a strident critic of Chinese investment in the UK, posted on social media last week that a CKI takeover of Thames Water "should be avoided at all costs". CKI had already expressed frustration at being eliminated from the Thames Water process in April, with The Times reporting that it had written to Ofwat to express its dismay. In recent weeks, the government has described Thames Water as "stable", but said it was ready to step in and take control of the company if required to. The company effectively faces a deadline of late July to finalise a rescue deal because of a referral of its five-year regulatory settlement to the Competition and Markets Authority.
Bloomberg
04-06-2025
- Business
- Bloomberg
Eversholt Rail Attracts Interest From Hong Kong's MTR
Eversholt Rail, the British rolling stock company being sold by CK Infrastructure Holdings Ltd., is attracting initial interest from suitors including Hong Kong railway operator MTR Corp., according to people familiar with the matter. MTR is among parties that have been studying Eversholt, the people said, asking not to be identified as the information is private. CKI has been seeking a valuation of about £4 billion ($5.4 billion) for the business, the people said.
Yahoo
21-03-2025
- Business
- Yahoo
Factbox-CK Hutchison: a global conglomerate caught in US-China trade spat
(Reuters) - CK Hutchison, a Hong Kong-based conglomerate, agreed to sell much of its global $22.8 billion ports business that includes assets near the strategically important Panama Canal to a group led by BlackRock this month. The canal's strategic value in global trade and U.S. President Donald Trump's call to end what he describes as Chinese control over it has made the deal a flashpoint for U.S.-China trade tensions, with media reports saying Beijing was unhappy with the deal and was reviewing it for security and antitrust issues. Owned by billionaire Li Ka-shing and founded and listed in Hong Kong, CK Hutchison has a global footprint with businesses spanning from ports to telecommunication. Here is a look at its origins and current standing globally: ORIGINS Li Ka-shing established Cheung Kong Industries in 1950 at the age of 21. The tycoon acquired a controlling stake in Hutchison Whampoa nearly three decades later. Hutchison Whampoa traced its roots to a small dispensary firm in China's southern Guangzhou that was established in 1828 and a dock and repair yard operator founded on the Pearl River in 1863. Li Ka-shing carried out a major reorganisation of the business in 2015 by merging his two flagship companies, Hutchison Whampoa and Cheung Kong. This created CK Hutchison, one of Asia's largest conglomerates with a global presence. GLOBAL STANDING CK Hutchison has interests in every continent and operates in more than 50 countries, employing more than 300,000 people as of June last year. About half its operating earnings come from its telecoms and infrastructure operations, with three-quarters derived from countries and territories outside mainland China. TELECOMMUNICATIONS The telecommunications business is the group's most profitable segment and brought in a quarter of its operating profits in 2024. Its CK Hutchison Group Telecom unit handles European operations, while Indonesia, Vietnam, and Sri Lanka are under Hutchison Asia Telecommunications. Italy and the UK are the top business contributors for the European unit, while Ireland and Sweden are the fastest growing markets. Three, its telecom brand, operates in eight countries including Ireland, Britain, Austria, and Sweden. Hutch in Sri Lanka and Vietnamobile in Vietnam are the prominent Asia brands. INFRASTRUCTURE The group's infrastructure operations are anchored by CK Infrastructure (CKI) and contributed just under a quarter of its operating profits in 2024, making this segment the second-largest profit earner. CK Infrastructure manages a wide range of assets across energy, transport, water infrastructure, waste management, and other related businesses across the world. Its interests include UK Power Networks, Northern Gas Networks, and Canadian Power. It is the largest foreign infrastructure investor in Australia, and also invests in toll roads and bridges in China, and infrastructure materials in Hong Kong. CKI holds the largest stake in Power Assets Holdings which supplies electricity and gas to millions of consumers across continents. PORTS AND RELATED SERVICES The group's sprawling maritime empire extends across 24 countries, with interests in 53 ports and 295 berths. These include container terminals in five of the world's 10 busiest ports. CK Hutchison's busiest ports include Shenzhen's deep water Yantian port, Mingdong and Pudong terminals in Shanghai, Hong Kong's Kwai Tsing Port, container terminals in Belgium, Germany, and the Netherlands, and Westports Malaysia. But the network of ports and terminals is at the centre of increasing geopolitical sensitivities surrounding critical trade infrastructure. If the deal with the BlackRock-led group goes through, that consortium will secure control of 43 ports comprising 199 berths in 23 countries. CK Hutchison, meanwhile, will maintain stakes in three of the world's top 10 busiest container ports. RETAIL The conglomerate is a major player in the global health and beauty landscape with an expansive footprint of nearly 17,000 stores across 30 markets worldwide. Retail contributed 20% to the group's operating earnings in 2024. AS Watson, which owes its lineage to the old Guangzhou dispensary, has a diverse portfolio spanning personal care, health and beauty products, food and fine wines, and consumer electronics and electrical appliances. Its notable brands include health and beauty retailers Watsons, Rossmann, and Superdrug, as well as the Hong Kong-based supermarket chain PARKnSHOP. FINANCE & INVESTMENTS, OTHERS The finance and investment portfolio serves as a strategic complement to CK Hutchinson's core operations, accounting for less than a fifth of its operating earnings. It manages substantial cash reserves and liquid investments while overseeing a number of partially-owned enterprises spanning multiple sectors. Sign in to access your portfolio
Reuters
20-03-2025
- Business
- Reuters
CK Hutchison: a global conglomerate caught in US-China trade spat
March 20 (Reuters) - CK Hutchison ( opens new tab, a Hong Kong-based conglomerate, agreed to sell much of its global $22.8 billion ports business that includes assets near the strategically important Panama Canal to a group led by BlackRock (BLK.N), opens new tab this month. The canal's strategic value in global trade and U.S. President Donald Trump's call to end what he describes as Chinese control over it has made the deal a flashpoint for U.S.-China trade tensions, with media reports, opens new tab saying Beijing was unhappy, opens new tab with the deal and was reviewing it for security and antitrust issues. Owned by billionaire Li Ka-shing and founded and listed in Hong Kong, CK Hutchison has a global footprint with businesses spanning from ports to telecommunication. Here is a look at its origins and current standing globally: ORIGINS Li Ka-shing established Cheung Kong Industries in 1950 at the age of 21. The tycoon acquired a controlling stake in Hutchison Whampoa nearly three decades later, opens new tab. Hutchison Whampoa traced its roots to a small dispensary firm in China's southern Guangzhou that was established in 1828 and a dock and repair yard operator founded on the Pearl River in 1863. Li Ka-shing carried out a major reorganisation of the business in 2015 by merging his two flagship companies, Hutchison Whampoa and Cheung Kong. This created CK Hutchison, one of Asia's largest conglomerates with a global presence. GLOBAL STANDING CK Hutchison has interests in every continent and operates in more than 50 countries, employing more than 300,000 people as of June, opens new tab last year. About half its operating earnings come from its telecoms and infrastructure operations, with three-quarters derived from countries and territories outside mainland China. TELECOMMUNICATIONS The telecommunications business is the group's most profitable segment and brought in a quarter of its operating profits in 2024, opens new tab. Its CK Hutchison Group Telecom unit handles European operations, while Indonesia, Vietnam, and Sri Lanka are under Hutchison Asia Telecommunications. Italy and the UK are the top business contributors for the European unit, while Ireland and Sweden are the fastest growing markets. Three, its telecom brand, operates in eight countries including Ireland, Britain, Austria, and Sweden. Hutch in Sri Lanka and Vietnamobile in Vietnam are the prominent Asia brands. INFRASTRUCTURE The group's infrastructure operations are anchored by CK Infrastructure ( opens new tab (CKI) and contributed just under a quarter of its operating profits in 2024, making this segment the second-largest profit earner. CK Infrastructure manages a wide range of assets across energy, transport, water infrastructure, waste management, and other related businesses across the world. Its interests include UK Power Networks, Northern Gas Networks, and Canadian Power. It is the largest foreign infrastructure investor in Australia, and also invests in toll roads and bridges in China, and infrastructure materials in Hong Kong. CKI holds the largest stake in Power Assets Holdings ( opens new tab which supplies electricity and gas to millions of consumers across continents. PORTS AND RELATED SERVICES The group's sprawling maritime empire, opens new tab extends across 24 countries, with interests in 53 ports and 295 berths. These include container terminals in five of the world's 10 busiest ports. CK Hutchison's busiest ports include Shenzhen's deep water Yantian port, Mingdong and Pudong terminals in Shanghai, Hong Kong's Kwai Tsing Port, container terminals in Belgium, Germany, and the Netherlands, and Westports Malaysia. But the network of ports and terminals is at the centre of increasing geopolitical sensitivities surrounding critical trade infrastructure. If the deal with the BlackRock-led group goes through, that consortium will secure control of 43 ports comprising 199 berths in 23 countries. CK Hutchison, meanwhile, will maintain stakes in three of the world's top 10 busiest container ports. RETAIL The conglomerate is a major player in the global health and beauty landscape with an expansive footprint of nearly 17,000 stores across 30 markets worldwide. Retail contributed 20% to the group's operating earnings in 2024. AS Watson, which owes its lineage to the old Guangzhou dispensary, has a diverse portfolio spanning personal care, health and beauty products, food and fine wines, and consumer electronics and electrical appliances. Its notable brands include health and beauty retailers Watsons, Rossmann, and Superdrug, as well as the Hong Kong-based supermarket chain PARKnSHOP. FINANCE & INVESTMENTS, OTHERS The finance and investment portfolio serves as a strategic complement to CK Hutchinson's core operations, accounting for less than a fifth of its operating earnings. It manages substantial cash reserves and liquid investments while overseeing a number of partially-owned enterprises spanning multiple sectors.
South China Morning Post
19-03-2025
- Business
- South China Morning Post
Hutchison's Panama ports deal must comply with the law: Hong Kong's John Lee
Concerns among residents sparked by CK Hutchison Holdings' Panama ports deal deserved 'serious attention', Hong Kong's leader said on Tuesday, as he made clear that all transactions had to abide by the city's laws. Advertisement Hours after Chief Executive John Lee Ka-chiu spoke on the sale by the Li Ka-shing company of all its port operations except for those in China and lashed out against foreign governments' 'abusive use of coercion' in trade relations, the foreign ministry in Beijing underscored the same stance. The ministry's spokeswoman stated the country's firm opposition to 'economic coercion and bullying' when asked about an investigation mainland Chinese authorities were reportedly carrying out on the deal. Shares of the Hong Kong conglomerate fell by 2.79 per cent on Tuesday, closing at HK$45.25 (US$5.82), while those of CK Infrastructure declined by 2.9 per cent. Both companies have cancelled their post-2024 results briefings for analysts scheduled for this week. Hutchison surprised markets earlier this month by announcing the ports sale to a group led by US investment firm BlackRock in a deal worth US$23 billion, with the Hong Kong company set to receive US$19 billion in cash. Advertisement Two Beijing offices overseeing Hong Kong's affairs have since posted scathing commentaries twice on their websites criticising the deal, moves seen as an indirect way for the central government to pressure the company into reconsidering the sale.
