Date
24 January 2017
Victor Li Tzar-kuoi says CK Hutchison has long-term partnerships with Chinese companies. Photo: HKEJ
Victor Li Tzar-kuoi says CK Hutchison has long-term partnerships with Chinese companies. Photo: HKEJ

Victor Li: CK Hutchison not withdrawing from China

CK Hutchison Holdings Ltd. (00001.HK) is denying plans to pull out of China, saying it has long-term partnerships with Chinese companies.

Deputy chairman Victor Li Tzar-kuoi said the group has been cooperating with mainland firms on certain natural gas projects through Husky Energy, the Hong Kong Economic Journal reports.

Husky and state oil giant CNOOC Ltd. (00883.HK) have ongoing offshore oil projects in the South China Sea, he said.

Li, the elder son of Hong Kong tycoon Li Ka-shing, made the remarks amid recent high-profile acquisitions of overseas assets by the conglomerate.

On Friday, Cheung Kong Infrastructure Holdings Ltd. (CKI, 01038.HK) and Power Assets Holdings Ltd. (PAH, 00006.HK) said they acquired Portuguese wind power company Iberwind Group for HK$2.5 billion (US$323 million) through a joint-venture company.

Morgan Stanley said Iberwind’s enterprise value is 986 million euros (US$1.1 billion) while its enterprise value/EBITDA ratio is 6.9 times.

That compares with 11.4 times for Spain-based EDP Renewables and 8.5 to 10.2 times for Chinese players, it said.

Iberwind is expected to deliver a 10 percent rate of return.

The investment creates room for CKI to raise its proposed takeover offer of PAH to one CKI share for every 1.15 to 1.2 PAH share held by independent shareholders from an initial offer of 1.04 PAH share.

[Chinese version中文版]

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