Chinese billionaire buys Northumbrian Water

NORTHUMBRIAN Water this morning agreed to a £2.4bn takeover by Hong Kong-based billionaire Li Ka-shing.

After weeks of speculation that a deal was imminent for the Pity Me-based firm, Northumbrian today agreed to the offer made by a consortium of companies headed by Cheung Kong Infrastructure(CKI), Mr Ka-shing's investment vehicle.

The utility firm employs 936 at its head office and 2,884 in total.

HL Kam, Group Managing Director of CKI, moved to reassure staff at the firm, which will become part of its UK Water business.

He said:"We attach great importance to the skills and experience of the existing management and employees of Northumbrian and believe they will be an important factor in the continuing success of the Northumbrian Group."

Shareholders in Northumbrian, which supplies 2.6m people in the North-East and 1.8m through Essex and Suffolk Water, will receive 465p per share.

CKI has agreed to sell the much smaller Cambridge Water to HSBC as part of the deal to avoid competition issues.

Ontario Teachers' Pension Plan, which owns nearly 27 per cent of Northumbrian, has agreed to accept the takeover offer.

Mr Ka-shing is known in Hong Kong as Superman because of the business prowess that has made him the world's 11th richest person, with an estimated personal fortune of $26bn.

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