CKI is the largest publicly listed infrastructure company in Hong Kong and is part of the Cheung Kong and Hutchison Whampoa group of companies. Globally, it is one of the leading investors in infrastructure and CKI has owned Cambridge Water since its acquisition from the Spanish Union Fenosa group in 2004. The sale of Cambridge Water has enabled a consortium, led by CKI, to launch a recommended takeover bid for Northumbrian Water Group plc (NWG), the UK listed water company. The completion of the sale of Cambridge Water plc needed to take place prior to the launch of the bid for NWG due to the operation of the UK water regulations. The CKI consortium’s offer values NWG’s issued share capital at approximately £2.4 billion.

Corporate finance partner Stephen Hamilton, who led the Mills Reeve team on the sale of Cambridge Water said, “This was a fascinating transaction to work on because of the complex regulatory regime that exists in the UK water utilities market. The sale of Cambridge Water to HSBC had to be completed within a tight timescale and its successful conclusion is a testament to the project team who have worked closely with CKI and its other advisers to close this transaction.”

Mills Reeve has worked closely alongside international law firm Freshfields Bruckhaus Deringer in connection with this transaction. Mills Reeve advised CKI on the sale of Cambridge Water and Freshfields, led by corporate finance partners Piers Prichard Jones and Edward Braham in London and Simon Weller in Hong Kong, is advising CKI on the offer for NWG.

The Mills Reeve team was led by corporate finance partners Stephen Hamilton and Claire Clarke, assisted by corporate lawyers Natalie Wade and Nicholas Crisp. Specialist advice was provide by partners Michelle Cookson (Real estate), Harry Scott (Pensions) and Zak Virgin (Banking) and assistant solicitors Matthew Short (Corporate tax), Simon Elsegood (Commercial contracts), Andrew Secker (Employment) and Rebecca Carriage (Environment).