Li Ka-shing rejected: Power Assets minority shareholders block CKI merger
Votes representing some 49 per cent of shares owned by independent minority shareholders opposed the proposal
Minority shareholders of Power Assets have blocked a proposed merger between Li Ka-shing controlled Power Assets and its parent Cheung Kong Infrastructure (CKI).
Votes representing some 49.23 per cent of the shares owned by independent minority Power Assets shareholders opposed the proposal to swap each Power Assets share for 1.066 CKI shares, compared to 50.77 per cent who approved it, CKI and Power Assets said in a joint statement to the Hong Kong stock exchange on Tuesday.
The “yes” votes fell short of the 75 per cent threshold required for the proposal to be passed.
“We are disappointed at today’s voting result but respect the views expressed by shareholders,” a Power Assets spokesman said. “We will discuss internally to decide on the way forward, always bearing in mind the long-term objective to deliver greater value to shareholders.”
The spokesman did not comment on whether it planned to pay a special dividend.
We are disappointed at today’s voting result but respect the views expressed by shareholders
Power Assets chairman Canning Fok Kin-ning had told shareholders if it had not spent most of the HK$68 billion two years after the spin-off and stake sell-down of its Hong Kong power business early 2014, it might pay a special dividend. But it had no obligation to do so.
