CK Group Moves to Offload UK Electricity Network in $14 Billion Transaction

The company, led by Victor Li, son of Hong Kong billionaire Li Ka-shing, is selling the UK’s largest power-distribution operator amid a wider reshaping of its corporate holdings.

Calvin Sit/ Bloomberg

Li Ka-shing, aged 97, is currently the second wealthiest individual in Hong Kong, possessing a net worth of $46.6 billion, trailing only battery magnate Robin Zeng, whose fortune amounts to $53.6 billion.

CK Infrastructure Group announced its intention to divest U.K. Power Networks to French utility Engie for GBP10.5 billion (US$14.2 billion), as detailed in a stock exchange filing on Thursday, according to the South China Morning Post. The transaction, anticipated to conclude in mid-2026, is integral to a comprehensive restructuring of the conglomerate’s portfolio, encompassing asset divestitures, which may ultimately redefine the empire founded by Li Ka-shing, as reported by Bloomberg. The magnate amassed his wealth by investing in regulated infrastructure and telecoms assets within mature Western markets, prioritising stable and predictable profits.

Since assuming leadership in 2018, his eldest son Victor has encountered the challenge of steering the group through a more tumultuous landscape characterised by intensified trade tensions and the disruptive emergence of artificial intelligence. "From a credit standpoint, the transaction is advantageous as it could enhance CK Hutchison’s leverage by approximately 0.5x and provides the company with the capacity to pursue acquisitions," stated Bloomberg Intelligence credit analyst Sharon Chen. CK Hutchison is considering a public offering for its health and beauty business, AS Watson Group. The U.K. power sale occurs amid increasing complexities surrounding the company's proposed divestiture of 43 global ports.

This week, Panama commenced the occupation of two facilities belonging to CK Hutchison near the Panama Canal, which have been a focal point in U.S.-China tensions. Negotiations with a buyer consortium of U.S. financial giant BlackRock and China Cosco Shipping have prolonged for several months, underscoring the political sensitivities associated with the transaction.

The acquisition enhances Engie's footprint in the U.K., where the nation is intensifying initiatives to extend its grid in response to increasing demand from renewable energy, electric vehicles, and data centers. The company will acquire a regulated asset that serves around 8.5 million customers in London and the southeast of England.