Hong Kong billionaire Li Ka-shing bought gas firm Wales and West Utilities for £645 million today — almost exactly a year after his Cheung Kong Holdings investment fund bought Northumbrian Water for £2.41 billion.
Li has focused on buying utilities here and elsewhere in the West because the stable regulatory environment makes for predictable returns.
In 2010, Cheung Kong Infrastructure and Li’s other investment arm, Power Asset Holdings, bought electricity distribution networks which provide power to London and the South-East from France’s EDF for £5.8 billion.
Wales and West has more than seven million customers in Wales and the South-West. It was sold by a consortium which included vehicles for Australian bank Macquarie, a subsidiary of the Canada Pension Plan Investment Board and AMP Capital.
“This is felt to be a quality investment that would provide long-term steady recurring income contribution,” Li’s firm said.
