The Tamesis
Li Ka-shing, senior advisor to CK Hutchison Group.
Visual China Group (Getty Images)
Companies controlled by Hong Kong billionaire Li Ka-shing and his family have agreed to sell Britain’s largest electricity producer to Engie, as the French utility giant seeks to capitalize on growing demand for data centers and electric vehicles.
The Li family’s Cheung Kong Infrastructure, Power Assets and Cheung Kong Holdings, collectively known as Cheung Kong Group, plan to sell UK Power Networks (UKPN) for 10.5 billion pounds ($14.2 billion). Cheung Kong Infrastructure and Power Industries each hold 40% of UKPN shares, Cheung Kong Group holds 20% of the shares.
Engie will fund the transaction through a combination of equity and debt. The deal, which is expected to close in mid-2026 and is subject to regulatory approval, will strengthen Engie’s position in the UK, which will become the company’s second-largest contributor after France.
“The acquisition of UKPN is a decisive step in cementing Engie’s position as the best-in-class utility for the energy transition,” Engie chief executive Catherine MacGregor said in a statement. “It is fully aligned with our ambition to become a key player in regulated electricity network infrastructure, which is critical for energy security, demand electrification and greater system flexibility.”
UKPN supplies electricity to 8.5 million customers in London and the south east and east of England. Cheung Kong, which originally acquired UKPN in 2010, said in a separate filing to the Hong Kong exchange that the sale would help “monetize its investment at an attractive valuation and generate substantial accounting gains and cash proceeds from future investments or acquisitions.”
The divestment comes as CK Hutchison’s plans to sell its stakes in 43 ports in 23 countries to a consortium led by BlackRock have been delayed due to scrutiny from Beijing, and after Panama’s Supreme Court invalidated two of CK Hutchison’s port contracts in January.
Li Zeju, chairman and executive director of CK Hutchison, said in a statement: “With our proven track record and strong capital base, Cheung Kong will continue to identify and pursue investment opportunities, whether in regulated industries or businesses with long-term security contracts, or other businesses with significant potential in existing and new markets, including the UK and beyond.”
News of the planned sale of UKPN boosted Hong Kong-listed shares of Cheung Kong Group affiliates. As of the close of trading, the share prices of CK Hutchison, Cheung Kong Infrastructure, Cheung Kong Holdings and Power Holdings rose by 3% to 5%.
Li Ka-shing’s real-time net worth reaches US$46.8 billion, making him the richest man in Hong Kong. One of Asia’s most powerful businessmen, Li Ka-shing retired in 2018 as chairman of his flagship companies CK Hutchison Holdings and Cheung Kong Holdings, but remains a senior adviser. His son Victor now leads the conglomerate, which has more than 300,000 employees and operates in more than 50 countries.
