Asian tycoon Li Ka-shing is assembling a bid for a majority stake in the gas distribution business of National Grid, the UK electricity network operator, bringing an experienced UK infrastructure investor to the auction that is expected to value the business at £11bn including debt.
Cheung Kong Infrastructure, a part of Mr Li’s sprawling global business empire, is leading a group of investors that is likely to submit an initial consortium offer by the end of the week, people close to the talks said. CKI did not respond to requests for comment.
The National Grid stake sale is set to be one of the largest infrastructure deals in the UK of recent years. It will also be a major test of the new conditions on foreign investment in UK infrastructure set by Theresa May’s government last week after it gave approval for the new £18bn Hinkley Point nuclear power station, which will be part-owned by a Chinese state-owned company.