Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>HSBC Global Research: CKI's Acquisition of N Ireland Gas Network Should Have No Major Impact on Financial Position
Recommend 6 Positive 14 Negative 14 |
||||
|
||||
|
European Commission approved the acquisition of Phoenix Energy, Northern Ireland's largest natural gas operator, by CKI HOLDINGS (01038.HK) and CK ASSET (01113.HK). HSBC Global Research commented that the approval eased concerns over the risk of antitrust approval, as CKI has significant investments in regulated utilities in the UK and Europe. The approval of the acquisition increases the likelihood that the deal will go ahead. The broker further expected that CKI would maintain its discipline in any merger or acquisition, meaning that a successful acquisition should increase shareholder value, particularly by creating synergies with existing regulated assets. The broker noted that even though the details of the acquisition have not been made public, it believed the acquisition will not significantly affect CKI's financial position due to the company's strong balance sheet, the support by the whole Cheung Kong series, and the small size of the acquisition target. HSBC maintained CKI's Buy rating and target price of $55. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
