Li Ka-shing’s CK Infrastructure buys US$113.5 million of renewable-energy assets in second UK deal in 2 weeks
- CKI has bought UU Solar, which owns and operates 70 renewable power-generation assets including solar projects and wind farms
- Acquisition will provide consistent returns as long-term agreements and subsidies underpin 90 per cent of its revenue, CKI says
It made the acquisition through UK Power Networks Services, a power distributor in southeastern and eastern England that is owned by CKI (40 per cent), Li’s international energy utility investment unit Power Asset Holdings (40 per cent) and Li’s property flagship CK Asset Holdings (20 per cent).
The UU Solar assets include 65 solar-power projects, four onshore wind farms and one hydropower plant, with combined installed capacity of 68.7 megawatts. Most of the electricity output is supplied to water and sewerage firm United Utilities Water, with the remainder exported to the power grid.
“With 90 per cent of the revenue underpinned by long-term agreements and UK government renewable subsidies, UU Solar will deliver immediate returns, recurrent profit contributions and consistent cash flows,” CKI said.
“CKI will also study new investment opportunities that arise from this global decarbonisation journey as part of the overall business development strategy.”
