Ck Infras. Share Price (CKI)

CKHH seems keen to get the ports deal done in whatever shape it can.

Latest reports indicate they are packaging blocks of ports for different levels of US/EU/China ownership. China said to indicate this would be possible.

Large profitable sale incoming. CKI has 65% of the rail leasing company that could be sold for £4bn. Realising a profit of around £1bn.

A solid business here, but its parent is caught up in US/Sino problems which are likely to weigh on the SP. No need to buy at these levels as it may get considerably cheaper.

CKHH will be flush with cash later this year…..it has announced an exclusive negotiations period with Blackrock, GIP and TiL to sell its ports division. The deal will generate about $19bn for the Group. It will also get £1.9bn from the Three/Vodafone deal. CKHH itself was valued before the deal at $20bn a deep discount to asset value so a revaluation is expected.

Parental funding means CKI will have no problem funding a bid for Thames or many other companies should it wish to.

Rumour that CKI bid $7bn for a majority stake in Thames Water……but bondholders needed to take a significant haircut.

Not sure CKI can own two of the major water companies, but they will need a lot to go right to make a success of Thames……but no doubt knocking a few £bn off the debt pile would help.

Not keen on the deal myself, but CKI has in the past been shrewd and they might just pick up a reasonably priced asset, although it comes with a toxic political legacy.