EDF completes sales negotiations with Li Ka-Shing
Consortium buys EDF's UK networks for £5.8bn
French energy firm EDF has completed sales negotiations with a
consortium headed by Hong Kong billionaire Li Ka-Shing.
The consortium, which includes Mr Li's holding company Cheung
Kong Infrastructure (CKI), has agreed to buy EDF'S UK networks for
£5.8 billion.
The sale will help ease debt levels at the French company, which
reported a 50 per cent drop in profits compared to last year.
Macquarie analyst Wei Sim claimed Mr Li, who is the world's 14th
richest man, will be pleased with the agreement.
He told Reuters "It fits the bill. That's the type of asset
they're [CKI] looking for - in English-speaking, OECD countries.
Historically, where they've gone wrong was in greenfield projects,
but these are long-term contracts with regulated returns."
EDF will continue to supply its customers with electricity as it
has only agreed to sell infrastructure such as cables and
substations.
The firm currently operates around 100,000 miles of cable across
Britain.