Hong Kong’s richest family has US$2.3 billion of cash in its CK Infrastructure unit to go on asset shopping spree

CK Infrastructure said it is on the prowl for acquisitions, as the energy flagship company controlled by Hong Kong’s wealthiest family sits on a financial war chest with HK$18 billion (US$2.3 billion) in cash.

CK Infrastructure and other CK Group units including CK Asset and Power Assets “are well placed to capitalise on investment opportunities as they arise around the globe, especially when the world is facing challenges,” said its chairman Victor Li Tzar-kuoi, the elder son of tycoon Li Ka-shing, during CK Group’s annual meeting. “The timing is quite good.”

The younger Li’s comment underscores how many of the world’s biggest and wiliest investors are taking advantage of cheap valuations caused by the pandemic-led global economic slump to hunt for bargains. Global mergers and acquisitions may accelerate this year from last year’s 44 per cent slump, especially in healthcare, technology and energy, Morgan Stanley said.

CK Infrastructure’s 2022 profit grew 3 per cent to HK$7.7 billion. Its business spans gas and power distribution, power generation, rolling stock leasing, water supply and sewage treatment in Britain, gas and power distribution and transmission in Australia, waste management and power distribution in New Zealand, waste-to-energy projects in Holland, power generation and oil logistics facilities and car parks management in Canada, and toll roads and bridges in mainland China.

CK Infrastructure will only pursue projects “that sit comfortably within our risk profile and within the right price parameters,” Li said, without elaborating on the companies merger targets. “There is no ‘must win’ mantra when it comes to our expansion plans.”