Sources told Bloomberg that Li Ka-shing's Power Assets Holdings Ltd would be selling as much as 70% of the stake it holds in its electricity business in Hong Kong. The spinoff would fetch the company controlled by Asia's wealthiest man an estimated price tag of USD 5 billion, according to the sources. This would make it the second initial public offering in Hong Kong in three years. Data compiled by Bloomberg showed that the AIA Group was able to raise USD 20.4 billion in an IPO in October 2010.
According to a Hong Kong stock exchange filing, the proceeds of the sale would be used to make acquisitions in the global power sector. Asian Capital (HK) Chief Adviser for China Ronald Wan told Bloomberg that the sale was consistent with Li's strategies.
"Li Ka-shing is cashing out in a relatively good market, which is consistent with his divestment strategies. He may want to seek overseas assets with higher growth rates as the Hong Kong electricity unit is a stable and mature business," Wan said in a phone interview.
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