Zhitong Finance App News, Electric Energy Industry (00006) announced that on April 24, 2024, Electric Power Industrial Subsidiary Company, Changjiang Industrial Subsidiary Company and Changjiang Infrastructure Subsidiary each signed a subscription agreement with CK William for the first share subscription. They have separately subscribed for 46,526 shares, 93,052 shares and 93,052 common shares of CK William, with a total subscription price of £46.526 million (equivalent to approximately HK$450 million) and £93.05 million, respectively (equivalent to approximately HK$901 million) and £93.52 million (equivalent to approximately HK$901 million). The above share subscriptions were carried out according to the proportion of CK William's interests in the Group, Cheung Kong Industrial Group and Changjiang Infrastructure Group each, and in accordance with substantially the same terms.

On the same day, Electric Energy Industrial Subsidiary, PAHGI, Changjiang Industrial Subsidiary, CKAUK, Yangtze River Infrastructure Subsidiary, CKIGI, CK William and CK William Subsidiary entered into an implementation agreement for loan repayment, which included but was not limited to: Electric Energy Industrial Subsidiary, Changjiang Industrial Subsidiary and Changjiang Infrastructure Subsidiary agreed to separately subscribe for CK William's 137,500 shares, 275,000 shares and 275,000 common shares of CK William on the effective date of the second share subscription. Of A$267 million, A$533 million and A$533 million, the above share subscriptions were carried out according to the share shares of the Group, Changjiang Industrial Group, and Changjiang Infrastructure Group each share in CK William's interests, and in accordance with substantially the same terms. The subscription price for the second share subscription will be paid in the form of loan repayment and realized by the Group, Changjiang Industrial Group and Changjiang Infrastructure Group (if applicable) transferring all rights, title and interest in any receivables under the relevant loan agreement to CK William.

According to the announcement, the first share subscription provided CK William Group with partial funding to support its acquisition of all of Lionrai's issued share capital under the acquisition agreement; according to the acquisition agreement, the costs and other expenses payable to the seller upon completion of the transaction (currently expected to occur on or around April 26, 2024) are estimated to be approximately £312.6 million (equivalent to approximately HK$3,026 million). The remaining costs and other expenses of the acquisition will be covered by loans provided by the Group, Changjiang Industrial Group and Changjiang Infrastructure Group; the above loans will be provided on general commercial terms and as a proportion of CK William's respective interests held by the Group, Changjiang Industrial Group and Changjiang Infrastructure Group.

Lionrai is an indirect holding company of PEG. PEG is one of three gas distribution network operators licensed to operate in Northern Ireland. The license covers approximately 48% of Northern Ireland's population, including the Greater Belfast region.

The initial share subscription and acquisition is in line with the Group's strategy to invest in global energy infrastructure projects. The second share subscription was part of CK William Group's capital restructuring to streamline its capital structure and enhance its financial flexibility.

As of the date of this announcement, the Group, Changjiang Industrial Group and Changjiang Infrastructure Group held 20%, 40% and 40% of CK William's interests respectively. This percentage will remain the same after the first share subscription and the second share subscription, and CK William will continue to be recorded as a joint venture of the Group.