CKI eyes London in second listing move

Staff reporter and Reuters

CK Infrastructure (1038), part of conglomerate CK Hutchison (0001), said it is considering a secondary listing on an overseas stock exchange such as London to enhance value for shareholders.

This was in response to media inquiries about the infrastructure giant’s plan to list in the United Kingdom.

CKI said the overseas listing is being considered without the prospect of raising any funds, according to a statement.

CKI said no final decision has been made as of yet.

Over 90 percent of CKI’s profit came from businesses outside Asia last year, with about 50 percent coming from its UK operations, the firm said.

A secondary listing in the UK could increase the company’s international visibility and strengthen its position as a global infrastructure investor, which would be beneficial for future fundraising or borrowing arrangements and provide an edge in acquisitions, it noted.

Through the potential listing, CKI could attract international investors, such as UK pension funds, thereby increasing the liquidity of its shares in the long term, according to CKI.

Other benefits include aligning the company with its peers in the UK or European market, facilitating research coverage by UK-based financial institutions and extending trading hours for shareholders.

The announcement comes as the company has been expanding and boosting its presence in Western markets.

Previously, a consortium, including CKI along with CK Asset and Power Assets, said it would acquire Phoenix Energy, a Northern Ireland gas distribution network operator, for an enterprise value of about HK$7.4 billion.

Currently, several stocks are listed on both the Hong Kong and London stock exchanges, including Air China (0753), HSBC (0005) and Standard Chartered (2888).

This came as the Wall Street Journal reported earlier this week that Singapore state investment company Temasek said its plan to list AS Watson Group remains in place, according to Temasek deputy chief executive Chia Song Hwee.

Temasek owns nearly 25 percent of the health and beauty company, with CK Hutchison holding the rest.