Consortium comprising Cheung Kong Holdings, Cheung KongInfrastructure and Power Assets submits proposal to acquire Envestra for AUD1.32/share cash.
This could be a positive catalyst for PA as it uses proceeds from the HKE spin-off to invest overseas and boost earnings. Potential earnings upside of up to HKD361m, in our estimate.
Reiterate BUY and target price of HKD75. We reckon the bidshows the company’s commitment to expand overseas.