CKI Nears Deal to Buy UK Wind Farm Assets From Aviva

(Bloomberg) -- A consortium led by CK Infrastructure Holdings Ltd. agreed to buy a portfolio of wind farms in the UK from Aviva Plc’s asset-management arm as the conglomerate backed by Hong Kong tycoon Victor Li considers London among second listing venues.

The CKI-led group will pay about £350 million ($450 million) for the assets, which include 32 operating onshore wind farms located in England, Scotland and Wales, according to a statement on Wednesday, which confirmed an earlier Bloomberg News report. 

The assets, owned by Aviva Investors, have 175 megawatts in installed capacity and 137 megawatts in net attributable capacity. It will provide immediate returns, stable cash flows and recurring profit contributions, the statement said.

The consortium also included CK Asset Holdings Ltd. and Power Assets Holdings Ltd., which will own 40% and 20% interests in the portfolio, respectively, according to the statement. The transaction is expected to be completed in late September.

Barclays Plc advised the CKI-led group, while Credit Agricole SA’s corporate and investment banking arm advised Aviva Investors.

Shares of CKI fell as much as 2.1% to HK$55.55 in Hong Kong on Wednesday. The shares have gained almost 31% this year. 

The Hong Kong-based conglomerate has been expanding in the UK as part of its efforts to grow in the renewable assets sector. The deal with Aviva represents the third infrastructure investment by CKI this year, following previous acquisitions of Phoenix Energy and Powerlink Renewable Assets, formerly known as UU Solar.

CKI is considering a second listing on an overseas stock exchange such as London’s, potentially becoming the first company to take advantage of new listing rules in the British capital. An additional listing of CKI could “provide a greater market” for trading in its shares, the company said last month.

(Updates with advisers on deal in fifth paragraph.)

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