Cheung Kong Infrastructure Buys EDF's UK Electricity Unit For GBP5.8 Bln - Source

30th Jul 2010 01:47

HONG KONG (Dow Jones)--A consortium led by Cheung Kong Infrastructure Holdings Ltd. (1038.HK) agreed to pay GBP5.8 billion ($9.05 billion) for Electricite de France SA's (EDF.FR) U.K. electricity distribution networks, a person familiar with the situation said Friday. The CKI consortium, which includes Hongkong Electric Holdings Ltd. (0006.HK) and the Li Ka Shing Foundation, is expected to complete the acquisition in the fourth quarter, the person said. The CKI consortium outbid U.K. utility Scottish & Southern Energy PLC (SSE.LN) and a consortium comprising sovereign-wealth fund Abu Dhabi Investment Authority, Macquarie Capital and Canada Pension Plan, the person said. The CKI consortium hired Royal Bank of Scotland Group PLC (RBS) as its financial adviser, while EDF hired Barclays PLC (BCS), Deutsche Bank AG (DB) and BNP Paribas SA (BNP.FR) to handle the deal. CKI and Hongkong Electric couldn't immediately be reached for comment. EDF is selling its three U.K. low-voltage distribution grids as part of a plan to reduce its debt. CKI and Hongkong Electric, both controlled by tycoon Li Ka-shing, have been increasing their overseas investments in the past few years to broaden their earnings base because of difficulties in expanding in Hong Kong's mature market. -By Aries Poon and Yvonne Lee, Dow Jones Newswires; 852-2802-7002; [email protected] (END) Dow Jones Newswires July 29, 2010 20:47 ET (00:47 GMT)