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An investment company controlled by the family of Li Ka-shing, Hong Kong’s richest man, has agreed to buy a portfolio of British wind farms worth £350 million as part of the latest expansion of its energy division.
Under the agreement, a consortium led by CK Infrastructure will acquire 32 onshore wind farms from Aviva Investors.
The plants, with a nominal capacity of 175 megawatts, include the 18 MW Den Brook wind farm in Devon and the 25 MW Minnygap project near Dumfries in Scotland.
The deal shows that established renewable energy plants remain attractive in the UK despite a special tax introduced after Russia’s large-scale invasion of Ukraine.
In autumn 2022, the UK announced its so-called Electricity Generator Levy, which imposes a 45 percent levy on electricity sold at an average price of more than £75 per megawatt hour.
Renewable energy sources such as wind farms were included in the levy because their revenues rose sharply after the Russian invasion, but their input costs – unlike coal or gas power plants – did not increase.
CKI said the assets would deliver “immediate returns, stable cash flows and recurring profit contributions”. The Hong Kong-listed company is one of the largest gas, electricity and water suppliers in the UK.
The transaction is expected to be completed at the end of September, the company said.
Earlier this year, CKI bought Phoenix Energy, Northern Ireland’s main gas distribution network, for £757 million. The company also acquired UU Solar, which owns around 70 smaller renewable energy projects, for £90.8 million.
The Li family has ventured into the UK utilities market with a series of acquisitions and investments over the past 20 years.
CKI bought UK Power Networks, the largest electricity supplier in London and the South East of England, for £5.5 billion in 2010 and also owns significant stakes in Northumbrian Water and Northern Gas Networks.
The United Kingdom generated the largest share of CKI’s global profits at 36 percent last year, up from 31 percent in 2022, the company said.
Victor Li, chairman of CKI and eldest son of Li Ka-shing, said the company is in a “favorable position” to explore new acquisitions due to its “solid” financial position.
The company said last month that it was exploring a possible secondary listing on the London Stock Exchange to “raise the company’s profile” and capitalize on its “geographically diverse” shareholder base.
CKI also controls gas and electricity facilities in Canada, Australia and New Zealand.
