Li Ka-shing sells UK assets, cashing out over 350 billion HKD in the past 5 years

Author | Liang Zhengyu                                   Editor | Li Qian

Cash out, turn around, and re-invest—the familiar script of the Li Ka-shing family, “not earning the last penny,” plays out once again.

On February 26, CK Hutchison Holdings Limited (hereinafter “CKH,” 00001.HK) and CK Infrastructure Holdings Limited (hereinafter “CKI,” 01038.HK) issued a joint announcement, announcing the sale of all shares in UK Power Networks (hereinafter “UKPN”), one of the largest distribution networks in the UK, jointly held by CKI subsidiaries, Power Assets Holdings Limited subsidiaries, and CKH subsidiaries. The total transaction price is GBP 10.548 billion, approximately HKD 110.75 billion.

This deal not only sets a new record for CKH’s recent exits from UK infrastructure assets but also reinforces the family’s consistent capital strategy—realizing gains on mature assets at high valuations while reserving space for future expansion.

“Buy and sell, only then can the business grow bigger. We’ve always disliked borrowing, so we reserve funds for larger transactions from time to time,” said Lee Cheok-ying, Chairman of CKH Group (01113.HK), in July 2025, when responding to the sale of UK Rails, a UK railway vehicle leasing company.

Since Li Zeju, Li Ka-shing’s eldest son, took over, CKH has continued asset restructuring and regional rebalancing, frequently “cashing in” in the UK and Europe, with transactions spanning property, telecommunications, energy, transportation infrastructure, and ports.

Unlike simple financial exits, CKH’s transactions often involve cycle judgment and risk management: on one hand, locking in returns by disposing of cash-flow-stable, mature assets; on the other, reducing risk exposure before macroeconomic and regulatory changes.

To outsiders, this rhythm of “cash out—turn around—re-invest” has become a key strategic feature for CKH to navigate cycles. With the UKPN change of ownership, the family’s cumulative cash-out over the past five years has exceeded HKD 350 billion.

1. Frequent Disposals of Overseas Assets

The sale of UKPN is seen as a precise realization of CKH’s overseas infrastructure asset portfolio.

UKPN was one of CKH’s significant overseas infrastructure assets acquired in 2010 and is a core operator in the UK’s distribution network sector. It mainly handles electricity distribution in London, Southeast England, and Eastern England, owning and operating about 192,000 km of distribution lines, covering over 29,000 square kilometers, serving approximately 8.5 million households and businesses.

Financially, UKPN has contributed stable and significantly growing revenue during CKH’s ownership. Audited financial data disclosed in the announcement show that for the fiscal year ending March 31, 2024, UKPN’s pre-tax and after-tax profit were approximately GBP 467 million and GBP 312 million, respectively; for the fiscal year ending March 31, 2025, these figures increased sharply to GBP 1.149 billion and GBP 853 million, with total assets valued at about GBP 5.584 billion.

CKH stated that since acquiring UKPN in 2010, the company has steadily transformed into a leading distribution network operator in the UK, providing stable financial contributions to the group.

Regarding the transaction price, based on CKI’s sale of a 40% stake at a basic price of GBP 4.219 billion, the overall valuation of UKPN is GBP 10.548 billion, roughly HKD 110.75 billion. Compared to the original purchase cost in 2010 of GBP 5.775 billion, this represents a significant appreciation.

In fact, market rumors as early as 2022 suggested that the Li Ka-shing family was considering selling UKPN, with potential valuations reaching up to GBP 15 billion. Although the current deal is below those earlier estimates, it remains one of the major recent asset transactions in the UK utility sector.

CKI’s board believes that this sale helps the group realize mature investments at attractive valuations, generating substantial accounting gains and cash flow, which can be used for future investments and acquisitions. The company estimates that, after accounting for its approximately 36.01% stake in Power Assets, CKI could realize about HKD 14.5 billion in actual gains. The proceeds will mainly be used to seek new investment or acquisition opportunities and for general working capital.

It is noteworthy that CKH does not directly receive the cash from this transaction; the funds will be managed by CKI.

On February 26, CKH closed at HKD 64.8 per share, up 4.52%, with a total market capitalization of HKD 248.2 billion; CKI closed at HKD 67 per share, also up 4.52%, with a market cap of HKD 168.8 billion.

2. Over HKD 350 Billion Cash Realized in the Past 5 Years

CKH’s global asset portfolio has long been centered in the UK. According to media reports, CKH was once considered the largest single overseas investor in UK history, with total investments exceeding HKD 2.5 trillion, covering distribution, natural gas, telecommunications, ports, and infrastructure.

Due to its high market share in several key public service sectors, the Li Ka-shing family has been nicknamed “owning half of Britain.”

However, over the past few years, this vast asset portfolio has been quietly changing. CKH has accelerated disposals of mature assets in the UK and Europe, gradually shifting its strategy toward high-level cash realization and capital recovery.

In early 2026, CKI-led consortium’s sale of UK Rails (Eversholt Rail), a major UK railway rolling stock leasing company, was approved by the UK’s Competition and Markets Authority. UK Rails was acquired by CKI and CKH in 2015 for a total enterprise value of GBP 2.5 billion, with each holding 50%.

A report by HSBC and J.P. Morgan last July indicated that the sale of UK Rails by CKH has yielded a return about twice the original investment. CKH stated that the transaction would bring in ideal accounting profits, though specific figures were not disclosed.

In June 2025, CKH completed the merger of its UK telecom assets with Vodafone UK. Vice Chairman Ho Kin-nam said at the time that the deal would unlock significant value for shareholders, with the group expecting to recover about GBP 1.3 billion in net cash.

In the same year, CKH announced a preliminary agreement with a BlackRock-led consortium to sell most of its stake in Hong Kong’s port group for USD 19 billion. Although subsequent policy issues caused some setbacks, the asset reallocation direction was already clear.

Looking further back, in 2022, CKH’s parent company CKI introduced KKR as a strategic investor and sold a 25% stake in Northumbrian Water, a UK water and wastewater treatment company, for GBP 867 million.

In December 2021, CKH’s subsidiaries (AF and VAH) planned to sell their aircraft leasing business for USD 4.281 billion, generating a profit of about USD 170 million.

In November 2020, CKH sold its European telecom infrastructure business, including 29,100 communication towers across six European countries, for EUR 10 billion.

In property assets, CKH’s recent disposal pace is similarly clear, mainly exiting core properties with significant appreciation.

In December 2021, CKH sold the London headquarters building of UBS for GBP 1.209 billion (about HKD 1.238 billion). The property, acquired in 2018, yielded a profit of about HKD 4.8 billion in less than four years, with a return on investment of 45%. Given the high valuation of London’s prime office market at the time, this was seen as a typical high-level realization.

In March 2022, CKH sold the 5 Broadgate office building in London’s financial district for GBP 729 million in cash. Acquired in 2018 for about GBP 1 billion, the sale price was below the purchase cost, reflecting changing market conditions.

Beyond the UK, CKH also realized large gains from high-end residential projects in Hong Kong. In September 2022, CKH sold the 21 Borret Road project at 207.7 billion HKD, including 152 residential units, expecting a profit of about HKD 6.3 billion.

The sale of UKPN is not an isolated event but part of CKH’s ongoing asset reallocation strategy. According to incomplete statistics from Times Finance, the Li Ka-shing family has realized over HKD 350 billion in cash over the past five years.

As Li Zeju previously stated, the group has diversified business options and can flexibly allocate capital across different regions, industries, and economic cycles. “We don’t focus on a single business; we have choices, and many of them.”