Li Ka-shing’s CKI to raise USD500m to fund UK rail deal

Hong Kong billionaire Li Ka-shing’s Cheung Kong Infrastructure Holdings Ltd. is seeking to raise more than USD500 million to help fund its joint purchase of the U.K.’s Eversholt Rail Group.
CKI will offer about 69 million shares at HK$56.60 (USD7.30) to HK$58.60 each through a placement, with proceeds financing the Eversholt purchase, according to deal terms obtained by Bloomberg News Tuesday.
CKI and ultimate parent Cheung Kong Holdings Ltd. will spend at least 1.03 billion pounds ($1.6 billion) for the British owner of rolling stock, according to a joint Hong Kong stock exchange filing Tuesday. CKI said the purchase marks its entry into a new segment of the transportation industry.
“Eversholt Rail is poised to extend our growth momentum and generate recurring profit contributions similar to that of our other infrastructure projects” CKI Chairman Victor Li said in a separate e-mailed press release. “CKI will continue to seek acquisition opportunities from around the world.”
Maximum capital commitment by Cheung Kong and CKI is 600 million pounds each, according to the exchange statement.
Li Ka-shing, 86, this month proposed to rearrange assets at his two main holding companies, Cheung Kong and Hutchison Whampoa Ltd. If approved by shareholders, the plan will create two new corporations with specific focuses: one for real estate, and the other with assets from ports to retail stores that span more than 50 countries.
Cheung Kong agreed in November to pay $1.89 billion to buy 45 planes from companies including General Electric Co.’s aviation services unit. Bonnie Cao, Bloomberg