Hong Kong billionaire Li Ka-shing made his first fortune in a growth industry, selling plastics in the 1950s and '60s. As his family-owned company moves from making money to preserving wealth, their focus is shifting. Cheung Kong Infrastructure Holdings, known as CKI and controlled by the Li family, paid $629-million Monday to buy income trust TransAlta Power, which owns six generating plants in three provinces. One of those plants feeds steam to a Lloydminster heavy oil upgrader owned by Li-controlled Husky Energy. TransAlta Power trustees put the company up for sale in May. CKI is buying a reliable company that kicks off steady cash flow, but one that lacks the dynamic prospects found in the first generation of Li holdings. CKI owns generation assets and other infrastructure around the world. TD Securities advised CKI on the TransAlta Power purchase, along with law firm Stikeman Elliott. Across the table, BMO Nesbitt Burns advised TransAlta Power, advising on the auction and weighing in with a favourable fairness opinion. Several other major Canadian utilities have spun off low-growth trust subsidiaries, and the trustee or the parent company may consider auctioning off these assets in the wake of the successful TransAlta Power sale.
TransAlta Power sale shows changing priorities of Li clan
Globe and Mail Blog Post
Last updated Thursday, Apr. 09 2009, 9:01 PM EDT