Cheung Kong in C$91m Canadian power deal

Hong Kong-based Cheung Kong Infrastructure also said it is looking to ‘propel our acquisition momentum forward’ as it studies more than 10 investment opportunities around the world.

Cheung Kong Infrastructure Holdings, a Hong Kong -listed company controlled by billionaire Li Ka-Shing, has agreed to acquire 75 percent of a Canadian power plant for C$91.4 million (€68 million; $93 million). 

Cheung Kong and its subsidiary Power Assets Holdings currently own 25 percent of the power plant, according to a statement. Following the close of the deal, which is expected in April, Power Assets and Cheung Kong will own 100 percent.

The power plant, Meridian Cogeneration, is a 220-megawatt natural gas-fired plant located in the central Canadian province of Saskatchewan. Meridian has a power purchase agreement with a local utility until 2025.

Cheung Kong already owns stakes in five other Canadian power plants, with a total capacity of 1,362 megawatts.

The deal, Cheung Kong’s first this year, could only mark the beginning of a larger shopping spree. Cheung Kong Managing Director HL Kam said in a statement that Cheung Kong has HK$5 billion (€467 million; $640 million) in cash and is continuing “to propel our acquisition momentum forward”. 

The company is “currently studying more than 10 investment opportunities around the globe and look forward to expanding our portfolio further”, Kam said.

Last year, Cheung Kong led the consortium that acquired the English distribution business of French electricity company EDF for £5.78 billion (€6.78 billion; $9.63 billion). EDF’s distribution networks serve about 7.8 million people.

Cheung Kong is reportedly also considering a bid for the UK power grid of EO.N, Germany’s biggest utility. 

Besides Canada, Hong Kong-based Cheung Kong has operations in China, Australia, New Zealand, the UK, and the Philippines. As of December 31, the company’s market capitalisation was HK$80 billion.