Cheung Kong Infrastructure (CKI)

[greengiraffe]

Li Ka Shing suffers rare setback in Power control


  [url=http://www.straitstimes.com/business/li-ka-shing-suffers-rare-setback-in-power-control#][/url]
HONG KONG • Power Assets shareholders yesterday rejected a US$12.4 billion (S$17.5 billion) buyout offer from billionaire Li Ka Shing, dealing a rare setback for Hong Kong's richest man as he seeks to consolidate his utilities and infrastructure businesses before handing over control of his empire to his elder son Victor.
Mr Li, 87, making his offer through Cheung Kong Infrastructure (CKI), failed to get enough Power Assets minority shareholders voting at a meeting to approve the deal, according to a statement to the Hong Kong bourse.
The proposal needed at least 75 per cent of votes cast by minority shareholders to be passed. Only 50.8 per cent did.

Earlier this month, influential proxy advisers Institutional Shareholder Services and Glass Lewis recommended that investors vote against Mr Li's offer, defying a man who is so revered in Hong Kong for his business acumen that he is known as "Superman".
CKI had offered 1.066 of its shares for every one of affiliate Power Assets, a deal valued at US$12.4 billion based on their latest stock prices. It also proposed a special dividend of HK$7.50 per share payable to the combined company's shareholders after the deal.
Besides not getting enough votes, about 26 per cent of Power Asset's minority holders rejected the deal. In order to go through, no more than 10 per cent of those shareholders could turn down the proposal.
CKI will not be able to make another attempt to buy Power Assets for another year.
BLOOMBERG

[BlueKelah]

If at first dun succeed try again....

Australia may look good but budget deficit and debt is starting to spiral out of control, may lose AAA rating soon. Diworsification?

Reckon USA assets better buy with Trump to do infrastructure stimulus soon.

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Billionaire Li Ka-Shing Offers $5.4 Billion for Duet

Hong Kong billionaire Li Ka-shing’s Cheung Kong Infrastructure Holdings Ltd. has offered to buy Duet Group at a premium of about 28 percent in a bid to win control of the Australian infrastructure company’s pipeline assets, according to people familiar with the matter.

The Hong Kong-based company made a conditional offer of A$3 a share for Duet last week, said the people, asking not to be identified as the details are private. The offer values Duet at about A$7.3 billion ($5.4 billion), according to data compiled by Bloomberg. The board of the Australian company plans to consider the offer, the people said. Duet shares closed at A$2.35 in Sydney on Friday.

The bid for Duet would be the latest attempt by Li to bolster his Australian business this year. The tycoon experienced a setback in August when the Australian government blocked CKI and State Grid Corp. of China from buying a majority stake in state-owned power network Ausgrid.

Expanding his business in Australia would also help Li diversify away from the U.K., the biggest profit generator for his flagship firm CK Hutchison Holdings Ltd., as Britain’s decision to split off from the European Union threatens to undermine the economy.

Wendy Tong Barnes, a spokeswoman for CKI, couldn’t be immediately reached for comment. A spokesman for Duet declined to comment.

Duet’s assets include the Dampier-Bunbury pipeline in Western Australia, a stake in electricity distributor United Energy, gas distribution business Multinet Gas, pipelines business DBP Development Group and Energy Developments Ltd., according to the Duet’s website.