Hong Kong’s CK Infrastructure Holdings has applied to the UK’s Financial Conduct Authority (FCA) for a secondary listing on the London Stock Exchange (LSE).
Shares will trade on both the HKEX under the stock code ‘1038’ and LSE under the ticker symbol “CKI”. The company said that it believes that a listing in London, in addition to the company’s listing on the HKEX, will benefit its “geographically diverse shareholder base and will assist in building the company’s profile and provide a greater market for trading in the shares.”
The UK is the group’s largest market, accounting for 35.7%, 35.2% (or 31.3% excluding the one-off gain from the group’s sale of part of the stake in Northumbrian Water Group in 2022) and 29.1% of its profit attributable to shareholders of the company (before unallocated items) in 2023, 2022 and 2021, respectively.
The company is continuing to bet big on the UK market and has made another acquisition in the space alongside its sister companies.
On August 14, 2024, a consortium comprising CKI, CK Asset and Power Assets, which will own 40%, 40% and 20% interests in the portfolio, respectively, agreed to acquire a portfolio of 32 onshore wind farms in the UK from Aviva Investors for approximately £350 million (approximately $455 million or HK$3.5 billion).
This marks CKI’s third acquisition in 2024, with the transaction expected to be completed in September. The portfolio comprises of 32 wind farms located in England, Scotland and Wales, totalling 175 MW in installed capacity and 137 MW in net attributable capacity.
According to a statement, the portfolio will provide "immediate returns, stable cashflows and recurring profit contributions". The assets will generate revenues from two sources: government subsidies, which are inflation-linked; and power revenue, including from power purchase agreements as well as from selling power to the market.
Announcing its first half 2024 results, CKI Infrastructure’s chairman Victor Li said: “Market uncertainties persist around the world as interest rates remain high and geopolitical tensions pervade headlines. With strong recurring income and predictable cashflow, CKI has shown its resilience during difficult financial times.”
Li added: “Despite the challenging backdrop, CKI is in an advantageous position to explore new acquisitions with its strategic partners within the CK Group, including CK Asset and Power assets, who also have very solid financials. Given the higher interest rate environment and tightened liquidity, the barriers to entry in the infrastructure sector are expected to be heightening, benefitting existing players with operational experience and financial strength like ourselves.”
For the six months ended June 30, 2024, the group recorded profit attributable to shareholders of HK$4.31 billion ($550 million), representing an increase of 2% as compared with the same period last year.
