Tuesday 17 November 2009

CKI Expresses Interest In EDF UK Power Asset

Cheung Kong Infrastructure (CKI) has expressed its interest in bidding for the UK's power distribution network, which is being sold by French state-controlled utility Electricite de France (EDF).
The electricity network is expected to be put up for sale next month. Reportedly, the Chinese fund is in competition with Canadian pension funds and Scottish & Southern Energy, who are also considering whether to make the bid.
H L Kam, group managing director of CKI, is quoted by Reuters as saying: "We have a gas network in the UK and the regulatory environment in gas is similar to power. So if we buy the power network, it will create synergies."
The EDF group last month initiated a process to evaluate ownership options for its electricity distribution business in the UK. This is in line with the group's plan, already revealed in February 2009, to reduce its net financial debt by at least EUR5 billion by the end of 2010.
EDF has sent sale documents to potential buyers of its GBP4 billion electricity distribution network in the UK. If a sale proceeds, the utility is expected to accept first-round bids around the middle of January with binding bids due by the end of the first quarter of 2010.

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