Jul. 25, 2012 (China Knowledge) - A consortium led by Cheung Kong (Holdings) Ltd<0001
>, a real estate developer controlled by Hong Kong business tycoon Li Ka-shing, has agreed to take over MGN Gas Networks (UK) Ltd, a U.K.-based gas distribution firm, for about US$1 billion, said the companies in the consortium in a joint statement today.
The consortium, including Cheung Kong Infrastructure Holdings Ltd<1038
>, Power Assets Holdings Ltd<0006> and Li Ka Shing Foundation Ltd, will buy the target company from a number of investment and fund-management companies, including Macquarie Global Infrastructure Funds 2 SARL, according to the statement.
Cheung Kong, Cheung Kong Infrastructure and Power Assets will each take a 30% shareholding in MGN Gas Networks, which indirectly owns Wales & West Utilities Ltd, a gas supplier with a customer base of 7.4 million. Li Ka Shing Foundation will hold the remaining 10% stake.
The target company booked a loss of GBP 62.5 million in fiscal year 2011 and a loss of GBP 63.1 million in fiscal year 2012.