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CKI Sells UK Rails to Reallocate Capital; Sources: Reserving Funds for 'Larger Deals' Is Part of CK Group Strategy
Recommend 11 Positive 26 Negative 3 |
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CKI HOLDINGS (01038.HK) announced that the consortium it leads is expected to complete the sale of UK Rails (Eversholt Rail), a UK railway vehicle leasing company, within this month. CK Group Chairman Victor Li said in July last year that "buying and selling" was essential for business expansion, and the group traditionally avoided borrowing, thus periodically reserved funds for larger transactions. According to analysis reports published by HSBC and JPMorgan in July last year, the cumulative return from the sale of UK Rails (Eversholt Rail) was around two times the original investment. JPMorgan believed that this move demonstrated CKI HOLDINGS's ability to reallocate capital to enhance shareholder returns, and that it might invest capital in acquiring projects with reliable and stable cash flows. Meanwhile, HSBC believed the cash from the transaction was likely to be reallocated to investment opportunities with better risk-reward profiles or synergies with existing businesses. Sources close to CK Group indicated that Li's response to the transaction, along with the comments from HSBC and JPMorgan analysts, not only applied to CKI HOLDINGS but also reflected the strategy of the entire CK Group. AAStocks Financial News |
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