Mar. 15, 2012 (China Knowledge) - Cheung Kong Infrastructure Holdings<1038
> or CKI, owned by business tycoon Li Ka-shing, announced today that it plans to raise HK$2.33 billion through a share placement for general funding purpose.
The company said in a statement that it would sell 50.9 million new shares to its controlling shareholder Hutchison Infrastructure Holdings Ltd (HIHL), a subsidiary of Hutchison Whampoa Ltd<0013
>, at HK$45.75 apiece.
Prior to the new share subscription, HIHL would sell the same amount of existing shares at the same price to third party investors. Upon the completion of the deal, HIHL will see its stake in CKI fall to 77.96% from the previous 79.6%.
Citigroup and HSBC Holdings<0005
> are joint bookrunners for the transaction.
CKI reported earlier that its net profit grew 54% year on year to HK$7.75 billion in 2011, due to higher contributions from its U.K. electricity business.