Hong Kong tycoon eyes EDF UK firm

Hong Kong’s richest businessman Li Ka-Shing plans to bid for the UK arm of French electricity giant EDF Group.

Mr Li’s bid would be a joint venture between holding company Cheung Kong Infrastructure (CKI) and Hongkong Electric, which is 40% owned by CKI.

Last October EDF said it wanted to "evaluate ownership options" for its UK electricity distribution business.

EDF Group is seeking to raise at least 5bn euros (£4.5bn; $6.8bn) to reduce its debt levels.

There are thought to be three other potential buyers for EDF’s UK electricity distribution business.

EDF Energy operates about 100,000 miles of cable across London, the South East and eastern England, supplying some eight million homes and around a fifth of the UK’s energy.

Other parts of EDF Energy, including its power generation and supply businesses, are not for sale.

’Well-placed’

CKI owns utility and road businesses in China, Australia, Canada, New Zealand and the UK.

On Thursday it announced that 2009 profits were up 26% in the previous year, at HK$5,568m (£477m; $717m).

Chairman Victor Li Tzar Kuoi said the group had about HK$10bn in cash and was "well-placed to consider large-scale acquisitions that add value to CKI’s quality portfolio".

CKI already has stakes in various UK utility firms, including Cambridge Water, Southern Water and distributor Northern Gas Networks.

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