---
title: "UBS: Selling UKPN is positive for POWER ASSETS"
description: "UBS pointed out that the transaction in which CK Infrastructure, Power Assets, and CK Asset sold UKPN to Engie is overall positive for Power Assets, with an expected revenue of approximately HKD 10.7 "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/277157486.md"
published_at: "2026-02-27T06:48:23.000Z"
---

# UBS: Selling UKPN is positive for POWER ASSETS

> UBS pointed out that the transaction in which CK Infrastructure, Power Assets, and CK Asset sold UKPN to Engie is overall positive for Power Assets, with an expected revenue of approximately HKD 10.7 billion. The transaction valuation is attractive, but the likelihood of a special dividend distribution in the short term is low, and Power Assets may be more inclined to use the funds for new acquisitions. The "Buy" rating on Power Assets is maintained, with a target price of HKD 70

CK Infrastructure (01038.HK), POWER ASSETS (00006.HK), and CK ASSET (01113.HK) sold their entire stake in the UK distribution network operator UK Power Networks (UKPN) to the French energy company Engie, with a total transaction value exceeding HKD 110 billion, reportedly valuing the enterprise at HKD 176.8 billion.

UBS published a research report indicating that POWER ASSETS should account for approximately HKD 44.3 billion of the basic transaction value, expecting to record a profit of about HKD 10.7 billion. The report views this transaction as overall positive for POWER ASSETS, noting that the transaction valuation based on UKPN's regulated asset base (RAB) is attractive. However, from a capital allocation perspective, the bank believes that the likelihood of POWER ASSETS distributing a special dividend in the short term is low, as the company is more inclined to reallocate funds for potential new acquisitions. If suitable acquisition targets are lacking, the likelihood of distributing a special dividend will increase.

The bank estimates that the sale of UKPN will have a minimal impact on POWER ASSETS' earnings performance, maintaining a "Buy" rating on POWER ASSETS with a target price of HKD 70

### Related Stocks

- [01113.HK - CK ASSET](https://longbridge.com/en/quote/01113.HK.md)
- [560190.CN - Penghua CSI All Share Utilities ETF](https://longbridge.com/en/quote/560190.CN.md)
- [159611.CN - GF CSI All Share Power Public Service ETF](https://longbridge.com/en/quote/159611.CN.md)
- [00006.HK - POWER ASSETS](https://longbridge.com/en/quote/00006.HK.md)
- [01038.HK - CKI HOLDINGS](https://longbridge.com/en/quote/01038.HK.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| CK Hutchison Subsidiaries, CK Asset to Sell U.K. Electricity Distributor to France's Engie | CK Hutchison subsidiaries Power Assets, CK Infrastructure, and CK Asset plan to sell UK Power Networks to France's Engie | [Link](https://longbridge.com/en/news/276985525.md) |
| Engie Raises Guidance After $14.2 Billion UK Power Networks Acquisition | Engie has raised its 2026 earnings guidance following its $14.2 billion acquisition of UK Power Networks. Despite a decl | [Link](https://longbridge.com/en/news/276995938.md) |
| CK group agrees to sell UK electricity operator for US$14.2 billion | CK Infrastructure Holdings, CK Asset Holdings, and Power Assets Holdings have agreed to sell UK Power Networks to Engie  | [Link](https://longbridge.com/en/news/276970338.md) |
| French Utility Engie Posts Lower FY25 Net Income, Revenue | French Utility Engie Posts Lower FY25 Net Income, Revenue | [Link](https://longbridge.com/en/news/276997211.md) |
| China Everbright Water Issues Cautious FY2025 Results Presentation | China Everbright Water has released its FY2025 annual results presentation, detailing its operations and management pers | [Link](https://longbridge.com/en/news/277145233.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.