CK Asset Eyes Share Buyback After £10.5B UK Power Sale

Asset Sale Unlocks HKD 22.2B in Net Proceeds

CK Asset (01113.HK) announced the strategic sale of its UK Power Networks assets for £10.5 billion. The transaction is expected to generate a substantial gain of HKD 8.4 billion. This move will inject net proceeds of HKD 22.2 billion into the company, a significant cash influx that analysts believe could shift its balance sheet to a net cash position by the end of this year.

Morgan Stanley Foresees Buyback, Price Rise in 60 Days

In response to the deal, Morgan Stanley has designated CK Asset as its top pick in the Hong Kong property sector, maintaining a "Buy" rating and a HKD 57 price target. The investment bank projects that the company's share price will rise within the next 60 days, driven by the high probability of a share buyback funded by the sale's proceeds. The bank also noted that the successful launch of the Kai Tak project, Victoria Blosson, and improved leasing at Cheung Kong Center II could provide additional positive catalysts for the stock.