CKI to seek merger and acquisition advisors for water deal?
CKI has agreed to be part of a joint venture takeover of Northumbrian Water.
Merger and acquisition advisors may be required by Cheung Kong Infrastructure Holdings (CKI) after it announced a deal has been reached to take over Northumbrian Water Group.
As part of the scheme, UK Water - which is indirectly wholly-owned by a consortium led by CKI - will acquire the British utility giant for an all-cash offer of £2.4 billion.
After much sales negotiations, the offer values each share in Northumbrian Water at 465 pence.
Cheung Kong Holdings and Li Ka Shing Foundation are the other two partiers involved in UK Water, with each having a 40 per cent and 20 per cent stake respectively.
Northumbrian Water's board of directors have announced they have reached an agreement and intend to tell their shareholders to back the plan.
It comes shortly after CKI released its interim results for the first six months of 2011, which shows unaudited profit of HK$3.9 billion (£305 million) - a near 100 per cent improvement on the figure from the previous year.
Posted by Ron Maverick