Billionaire Li Ka-shing has offered to buy UK power grids from France's EDF for £5.8 billion, giving his companies a foothold in more lucrative overseas markets.
Cheung Kong Infrastructure (CKI) and Hongkong Electric (HKE) said they won an auction for three power distribution grids and private power networks owned in Britain by EDF, the world's second-largest utility.
EDF's UK unit, EDF Energy Networks, distributes electricity to 7.8 million customers and generates around a fifth of Britain's electricity.
The acquisition covers firms that distribute electricity in southeast and eastern England, including London, and provide power-related infrastructure services under long-term contracts.
The deal, which is subject to regulatory approvals, comes as part of a slew of grid sales in Europe, partly for regulatory reasons and partly because the assets no longer provide the returns the utilities have expected.
CKI and HKE would each hold 40 per cent of the entity buying the UK assets, with the rest held by two foundations controlled by Li, the companies said in a statement in Hong Kong.
Hutchison Whampoa Ltd, chaired by Li, owns 85 per cent of CKI. Cheung Kong Infrastructure, headed by Li's son Victor, owns close to 39 per cent of HKE.
In Paris, EDF confirmed it received an offer from the Hong Kong companies for the British assets.
Reuters