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KKR to buy 25 per cent stake in Li Ka-shing-backed British water company for US$1.02 billion
- Consortium led by CK Infrastructure Holdings acquired Northumbrian Water for £2.41 billion in 2011
- Deal comes after report separate transaction between KKR-led consortium and CK Infrastructure for British electriticy provider fell apart
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Chad Brayin London
Kohlberg Kravis Roberts (KKR) has agreed to buy a 25 per cent stake in a British water and waste-water services company controlled by Hong Kong tycoon Li Ka-shing’s companies for £867 million (US$1.02 billion).
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The American private-equity giant will acquire a stake in Northumbrian Water from several subsidiaries of CK Group, the company founded by Li Ka-shing, Hong Kong’s richest man, according to a stock exchange filing in Hong Kong.
CK Group expects to report a net gain of HK$500 million (US$64 million) on the transaction, with the proceeds being used for general corporate purposes.
The transaction is subject to regulatory approval, including approval by Britain’s Financial Conduct Authority. It is expected to close later this year.
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How Li Ka-shing became Hong Kong's richest man
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Northumbrian Water, based in Durham, provides water and sewage services to 4.4 million people in Northeast and Southeast England. It reported a profit of £2.1 million last year.
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