<p>CKH HOLDINGS Group reappears with a &#34;big deal&#34;! Cheung Kong Infrastructure (1038) leads a consortium to announce the sale of all equity in UK Power Networks (UKPN), the largest electricity distributor in the UK, to French energy company Engie S.A., with an estimated enterprise value of up to £16.838 billion (approximately HKD 176.8 billion), making it one of the largest transactions in the global utilities sector in recent years. A review of the data reveals that CKH HOLDINGS has been frequently trading European assets in recent years, with many sale plans, including the globally watched Hutchison Ports transaction, as well as rumors that Watsons Group plans to dual-list in Hong Kong and the UK, among others. As for the most classic transactions, nothing beats the sale of a series of European launch tower assets and businesses for over HKD 100 billion in 2020, and the &#34;Orange Sale&#34; in 1999, which broke the record since Hong Kong's opening.</p>
<p>Related article: Cheung Kong Infrastructure leads consortium to sell UK electricity distributor, enterprise value exceeds £17 billion; Li Ka-shing: Continuing to seek investment opportunities.</p>
<h2>Last month, sale of UK Rails received UK approval</h2>
<p>In addition to the latest sale of the UK’s largest electricity distributor UK Power Networks, last month it was also confirmed that the group led a consortium to sell the UK railway vehicle leasing company UK Rails (Eversholt Rail), which has received approval from the UK Competition and Markets Authority, with the buyer being European railway vehicle leasing company Beacon Rail. The selling companies are held 65% by Cheung Kong Infrastructure, 20% by CK Hutchison Holdings (1113), 10% by CLP Holdings (006), and 5% by CKH HOLDINGS (001).</p>
<p>Related article: Cheung Kong Infrastructure leads sale of UK Rails expected to complete this month; Li Ka-shing previously stated that cashing out is a &#34;larger transaction&#34;; news: part of the overall strategy of the Cheung Kong Group.</p>
<h2>Three UK merges with Vodafone to recover £10 billion in cash</h2>
<p>CKH HOLDINGS announced last June that its Three UK has completed the merger of UK telecommunications businesses with Vodafone, with the newly established &#34;Vodafone Three&#34; having 51% ownership by Vodafone and 49% by CKH HOLDINGS's CKHGT. CKH HOLDINGS Vice Chairman and CKHGT Executive Chairman, Canning Fok, stated at the time that the merger releases significant value for shareholders, and the group will recover approximately £1.3 billion (approximately HKD 13.8 billion) in net cash.</p>
<p>Related article: Vodafone and CKH HOLDINGS complete merger of UK telecommunications business; new company plans to invest over £100 billion in 5G networks.</p>
<h2>£740 million acquisition of Northern Ireland gas network</h2>
<p>However, CKH HOLDINGS has also acquired many European assets in recent years. Among them, Cheung Kong Infrastructure, CK Hutchison Holdings, and CLP Holdings formed a consortium to acquire 100% equity in the Northern Ireland gas network Phoenix Energy in April 2024, with an enterprise value of £75.7 million (approximately HKD 7.4 billion). Cheung Kong Infrastructure and CK Hutchison Holdings will each hold 40% equity in the consortium, while CLP Holdings will hold the remaining 20% equity. It is understood that this natural gas network covers 78% of Northern Ireland's pipelines, providing services to 48% of Northern Ireland's population, including the Greater Belfast area.</p>
<p>Related article: CKH HOLDINGS acquires Northern Ireland gas network for £740 million; Li Ka-shing: Another acquisition of quality assets</p>
<h2>Acquisition of UK Renewable Energy Asset Portfolio in 2024</h2>
<p>In May 2024, CKH Holdings completed the acquisition of a 100% stake in the renewable energy asset portfolio UU Solar, with a total installed capacity of 68.7 megawatts, through its private network business UK Power Networks Services. The enterprise value of the project reached £90.8 million (approximately HKD 890 million). UU Solar owns and operates a total of 70 renewable energy assets, including 65 solar photovoltaic power plants, 4 onshore wind farms, and 1 hydropower facility, with a total installed capacity of 68.7 megawatts. Most of the renewable energy generated is supplied to the regulated water and sewage company United Utilities in the UK, while excess electricity is fed back into the distribution network.</p>
<p>Related article: Li Zeju pointed out that the world order and market turmoil still give CKH Holdings an advantage in acquiring assets, with a cautiously optimistic business outlook.</p>
<h2>Recent European Asset Transactions by CKH Holdings</h2>
<table>
<thead>
<tr>
<th>Date</th>
<th>Project</th>
<th>Transaction Type</th>
<th>Amount (HKD)</th>
</tr>
</thead>
<tbody>
<tr>
<td>June 2026</td>
<td>UK's largest distributor UK Power Networks</td>
<td>Sale</td>
<td>Approximately 176.8 billion</td>
</tr>
<tr>
<td>January 2026</td>
<td>UK railway vehicle leasing company UK Rails</td>
<td>Sale</td>
<td>-</td>
</tr>
<tr>
<td>June 2025</td>
<td>3 UK and Vodafone UK telecommunications business</td>
<td>Merger</td>
<td>Approximately 13.8 billion</td>
</tr>
<tr>
<td>May 2024</td>
<td>100% stake in UK renewable energy asset portfolio UU Solar</td>
<td>Acquisition</td>
<td>Approximately 890 million</td>
</tr>
<tr>
<td>April 2024</td>
<td>100% stake in Northern Ireland gas network Phoenix Energy</td>
<td>Acquisition</td>
<td>Approximately 7.4 billion</td>
</tr>
<tr>
<td>2020</td>
<td>A series of European launch tower assets and businesses</td>
<td>Sale</td>
<td>Approximately 91 billion</td>
</tr>
</tbody>
</table>
<h2>Century Port Transaction Faces Significant Obstacles</h2>
<p>In addition to completed transactions, CKH Holdings has several potential deals pending announcement in recent years. Among them, the most closely watched is the plan to sell all interests in Hutchison Port Holdings Group, which operates 43 ports in 23 countries, with a total enterprise value of USD 22.8 billion. It was once expected to bring the group over USD 19 billion (approximately HKD 148.2 billion) in cash proceeds, equivalent to CKH Holdings' overall market value at the time, making it the largest transaction in CKH Holdings' history. However, this transaction now faces significant obstacles, as Panamanian President José Raul Mulino recently ordered the temporary takeover of two ports operated by a subsidiary of CKH Holdings.</p>
<p>Related article: Panama temporarily takes over two ports; CKH Holdings calls the action illegal. &#34;Employees must not communicate, or they will face prosecution.&#34;</p>
<h2>Watsons Plans Dual Listing in Hong Kong and the UK</h2>
<p>On the other hand, CKH Holdings' retail flagship Watsons Group is rumored to be planning a spin-off listing. According to Reuters, Watsons plans to dual list in Hong Kong and the UK, with a valuation potentially reaching USD 30 billion (approximately HKD 234 billion), aiming to complete the process by the second quarter, and Singapore sovereign fund Temasek will use this opportunity to exit its long-term investment
However, a spokesperson for CKH HOLDINGS stated at the time that they would not respond to market rumors.</p>
<p>Related article: CKH HOLDINGS rumored to split Watsons for dual listing in Hong Kong and the UK, valuation may reach HKD 234 billion, Temasek seeks exit.</p>
<h2>Italian subsidiary Wind Tre rumored to merge</h2>
<p>In addition, there were reports last October that CKH HOLDINGS was in preliminary talks to merge its Italian subsidiary Wind Tre with the Italian operations of French telecom group Iliad. Wind Tre is reported to be the third-largest mobile network operator in Italy, with a market share of about 24%, while Iliad is the fourth-largest operator in the region, with a market share of nearly 11%. Therefore, if the deal progresses, the Italian mobile communications market will shrink from four operators to three, which is bound to attract significant regulatory and political attention.</p>
<p>Related article: CKH HOLDINGS suspected of joining the Italian telecom battle, its subsidiary Wind Tre proposes merger with two competitors.</p>
<h2>Record &#34;billion&#34; asset sale in 2020</h2>
<p>As for CKH HOLDINGS' last &#34;billion&#34; asset sale, it dates back to 2020 when it packaged and sold a series of European tower assets and businesses to European telecommunications and broadcasting infrastructure operator Cellnex for a total price of about EUR 10 billion (approximately HKD 91 billion), covering markets in Austria, Denmark, Ireland, Italy, Sweden, and the UK. CKH HOLDINGS used the proceeds to reduce debt and provide funding for share buybacks in the following years, indirectly enhancing shareholder returns.</p>
<h2>The classic &#34;orange&#34; sale in 1999</h2>
<p>Additionally, as early as October 20, 1999, with the telecommunications and internet boom sweeping the globe, Orange caught the attention of Germany's Mannesmann. Li Ka-shing decided to take advantage of the high valuation and sell his 44.8% stake in Orange, with a total transaction value reaching GBP 19.8 billion, bringing CKH HOLDINGS HKD 113 billion in pre-tax profit, setting a record for the largest single transaction amount since Hong Kong's opening, becoming a well-known story, as the purchase price in earlier years was only HKD 8 billion, resulting in a profit of over 11 times for the group.</p>
<p>Related article: Li Ka-shing's protégé Ho Kwan-ying steps back, &#34;working emperor&#34; credited with the HKD 100 billion orange sale profit of 11 times becoming a legend</p>

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<p>CKH HOLDINGS, through its subsidiary CKI HOLDINGS, is selling the UK's largest distribution company, UK Power Networks, to the French energy company Engie S.A. for an enterprise value of approximately £16.838 billion. This is one of the largest transactions in the global utilities sector in recent years. CKH HOLDINGS has been active in asset transactions in Europe, including the sale of UK Rails and the merger of its 3 UK business with Vodafone, which is expected to unlock significant value for shareholders</p>

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CKH HOLDINGS

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CKI HOLDINGS

Penghua CSI All Share Utilities ETF

CKH HOLDINGS sells UK distribution business, frequent transactions of European assets, reviewing recent major deals