Gas Networks owner in £4bn move for EDF arm

THE Hong Kong billionaire who owns Leeds-based Northern Gas Networks is considering a bid for EDF's electricity distribution business in the UK, it was reported yesterday.

Sir Li Ka-Shing is said to be preparing a 4bn-plus bid through Cheung Kong Infrastructure Holdings.

If successful, the bid would increase Hong Kong-listed CKI's significant stake in key UK infrastructure.

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EDF, which is controlled by the French government, announced last year that it wants to sell its electricity distribution business to help reduce debts by "at least five billion euros by the end of 2010".

The business includes power links to Heathrow and Gatwick airports, the London Underground and mainline London rail stations.

Two other consortiums are said to be in the running.

They are Scottish and Southern Energy with Canadian pension fund Borealis and the Abu Dhabi Investment Authority with Macquarie Capital and Canada Pension Plan.

A spokeswoman for EDF Energy said: "Any decision on the sale of these networks can only be examined by the board of directors once firm, fully-financed offers have been received."

Sir Li, who is believed to be Asia's richest man with an estimated wealth of 12bn, owns 88 per cent of Northern Gas Networks, the distributor, through CKI and Hongkong Electric Holdings.