(Bloomberg) -- CK Infrastructure Holdings Ltd. said it’s studying all opportunities that are beneficial to the company and its shareholders, in a response to recent news reports about its interest in investing in Thames Water, the UK’s largest water and sewage operator.
While declining to comment specifically on the British company, CKI Infrastructure stressed its own financial strength in a statement Tuesday. Its cash on hand was at HK$9.2 billion ($1.2 billion) as of end June, with a net debt to net total capital ratio of 9.8%, it said.
“This sound underlying foundation provides the group with the financial flexibility to weather any market uncertainties and form a solid backing for new acquisition opportunities,” the company said.
CK Infrastructure, part of billionaire Li Ka-shing’s business empire, counts on the UK for more than a third of its profit. It operates a range of power, water and gas networks in the country and other regions including Australia and Canada. The group, together with KKR & Co., owns stakes in Northumbrian Water, which supplies water to the east of England.
Thames Water, which only has enough money to last until early next year, this month extended a deadline for new investors to submit their bids for injecting at least £3.3 billion ($4.2 billion) in equity over the next five years. The money would offer the British utility a lifeline as it seeks to fix chronic leaks and sewage spills, as well as tackle climate change and cope with a growing population.
Other potential bidders include Castle Water Ltd., which bought Thames’ non-household water and sewerage retail business in 2016. Thames and its adviser, Rothschild & Co., have also approached Brookfield Asset Management and Carlyle Group Inc., Bloomberg News reported earlier, citing people familiar with the process.
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