Date
27 May 2017
Power Assets will consider a special dividend if it doesn't find avenues to deploy its surplus cash. Photo: HKEJ
Power Assets will consider a special dividend if it doesn't find avenues to deploy its surplus cash. Photo: HKEJ

Power Assets to pay special div if no big investment projects

Power Assets Holdings (00006.HK), a utilities arm of tycoon Li Ka-shing’s vast business empire, said on Wednesday that it will consider paying a special dividend if it cannot find any sizeable investment opportunities by the time of an annual shareholders’ meeting later this year.

Analysts believe the special dividend, if it comes about, could amount to HK$10 to HK$15 per share, the Hong Kong Economic Journal reported.

The payout will benefit Cheung Kong Infrastructure Holdings (01038.HK) which owns about 39-percent equity interest in Power Assets, which was formerly known as Hongkong Electric Holdings.

The utilities firm had about HK$68.15 billion cash in hand as of the end of last year, up 11 percent from a year ago.

In comparison, parent company Cheung Kong Infrastructure had only HK$7.9 billion.

A merger proposal of the two companies was voted down last year by shareholders who opposed a post-deal dividend arrangement.

The two companies may come up with another merger proposal if shareholders get soothed after a potential special dividend, according to some analysts.

[Chinese version 中文版]

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