Two subsidiaries of Hutchison Whampoa (0013.HK) have agreed to acquire an airport parking lot operator in Canada for C$397.5 million (US$366 million), in the latest overseas deal of the conglomerate controlled by tycoon Li Ka-shing.
Cheung Kong (Holdings) (0001.HK) and Cheung Kong Infrastructure (1038.HK) will buy Park’N Fly, which runs off-airport lots in Toronto, Montreal, Edmonton, Ottawa and Vancouver, Ming Pao Daily reported Thursday, citing a company announcement.
Based on unaudited net profit of C$12.1 million recorded by part of the Canadian company’s business, the firm has been valued at 29 times earnings, according to the report.
Cheung Kong said it will set up a 50-50 joint venture with Cheung Kong Infrastructure to proceed with the transaction. It says the deal will contribute considerable cash flow and offer higher return to the company.
The transaction is expected to be completed in the middle of July.
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