Cheung Kong Infrastructure to Buy 50% Stake in Portuguese Wind Energy Company

   By Joanne Chiu 
 

Cheung Kong Infrastructure Holdings Ltd (1038.HK) has agreed buy a 50% stake in a Portuguese wind-energy company for around 144 million euros ($161.5 million), marking the company's first entry in the European country's energy sector.

The infrastructure investment arm of Hong Kong tycoon Li Ka-shing said after markets closed Friday that its plan to buy a major stake in Iberwind-Desenvolvimento e Projectos S.A., a wind energy company in Portugal, is subject to approval from the Portuguese Competition Authority. The deal is expected to be completed by the end of 2015.

Separately, Cheung Kong Infrastructure's 38.9%-owned Power Assets Holdings Ltd. (0006.HK) said it agreed to set up a joint venture with CKI for the management of the investment in Iberwind.

The move comes after a proposed merger in September of the infrastructure-focused CKI with its Hong Kong-listed power utility affiliate in an all-shares deal in a bid to strengthen its war chest for acquisitions.

Iberwind, a wind-power electricity in Portugal, has an installed capacity of 684 megawatt from 31 wind farms, representing around 15% market share in the Portuguese wind market.

Write to Joanne Chiu at [e-mail]

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(END) Dow Jones Newswires

October 04, 2015 20:59 ET (00:59 GMT)

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