Debt laden French power group EdF has agreed to sell its UK power networks business for £5.8 billion to a consortium headed by Hong Kong billionaire Li Ka-Shing.
The acquisition covers firms that distribute electricity in southeast and eastern England, including London, and provide power-related infrastructure services under long-term contracts. EdF is not selling its power generation and supply interests, which means that business and retail customers can continue to buy their electricity from the compamny.
The infrastructure to be sold includes EDF's low-voltage electricity distribution networks in the east and south of England, and long-term contracts with businesses such as the London Underground, the Channel tunnel, and Heathrow and Gatwick airports.
The Li Ka-Shing - led consortium, including his holding company Cheung Kong Infrastructure (CKI), Hongkong Electric and the Li Ka-ShingFoundation, beat a group comprising Macquarie of Australia, the Abu Dhabi Investment Authority, and Canada Pension Plan, to clinch the deal.
The sale price is 45 % more than that originally expected, which will help the state-controlled EdF reach its €5bn target for disposals by the end of 2011.
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