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Li's CK Infrastructure Is Said to Weigh Offer for Cory Riverside

By Vinicy Chan and Dinesh Nair

/ Bloomberg |

September 17, 2017 8:20 PM SGT

CK Infrastructure Holdings Ltd., the infrastructure investment company controlled by Hong Kong’s richest man Li Ka-shing, is considering an offer for U.K. energy producer Cory Riverside Energy Group, people with knowledge of the matter said.

The London-based energy-from-waste company could be valued at more than 1 billion pounds ($1.3 billion), including debt, the people said, asking not to be identified because the information is private. China Everbright Group and Beijing Enterprises Group are also weighing offers, the people said.

The owners of Cory Riverside have been discussing a potential sale with financial advisers, but a formal auction process hasn’t started, one of the people said. Other bidders including pension and infrastructure funds may also bid for the business, another person said.

Photographer: Justin Chin/Bloomberg

Billionaire Li Ka-shing

Energy Deals

Companies like Cory Riverside, which generates sustainable energy from waste incineration, are drawing suitors as countries work to cut their reliance on fossil fuels. Chinese companies have announced $6.6 billion of alternative energy acquisitions this year, an increase of 56 percent from the same period a year ago, data compiled by Bloomberg show.

Representatives at China Everbright and CK Infrastructure didn’t respond to calls and emails seeking comment. A Hong Kong-based spokesman for Beijing Enterprises and a representative for Cory Riverside declined to comment.

Cory is majority-owned by Strategic Value Partners, with other investors including buyout firm EQT Partners and Commerzbank AG, its website said. Cory Riverside said it generates 525 gigawatt hours of electricity each year from processing 750,000 metric tons of London’s waste.

Beijing Enterprises, a conglomerate controlled by the Chinese capital city’s government, agreed in February last year to purchase Germany’s EEW Energy from Waste GmbH for 1.44 billion euros ($1.71 billion).

CK Infrastructure has built a portfolio of investments comprising electricity, gas and water businesses in the U.K. It was also part of a consortium that bought Northumbrian Water Group, with an enterprise value of 4.8 billion pounds in 2011.

— With assistance by Prudence Ho, and Aibing Guo

The story, written by Vinicy Chan and Dinesh Nair, will be published on Bloomberg.

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