CKP and CKI to Acquire Reliance Home Comfort for CAD 2.82 Billion
March 31, 2017
CKP (Canada) Holdings Ltd. has entered into a definitive agreement with investment funds managed by Alinda Capital Partners to acquire Reliance Home Comfort ("Reliance") for an equity purchase price of CAD 2.82 billion. No incremental debt will be incurred by Reliance as part of the sale and all existing Reliance indebtedness will be assumed.
CKP (Canada) Holdings Ltd. is a wholly-owned subsidiary of Cheung Kong Property Holdings Ltd (“CKP”), a publicly-listed company in Hong Kong and in which the Li family trust is the largest shareholder. CKP said it intends to on-sell up to 25% of Reliance to Cheung Kong Infrastructure Holdings Ltd.(“CKI”), the largest publicly-listed infrastructure company in Hong Kong and another company in the Li family trust group, upon obtaining the necessary approvals.
“I am very happy about the Reliance acquisition. With my close ties in the country, I have always been on the lookout for sizeable investments back in Canada,” said Victor Li, Managing Director of CKP and Chairman of CKI. “For our Group, Canada has always been an important market. We have had very positive experiences nurturing Canadian businesses like Husky Energy and Park’N Fly. We hope that Reliance will also grow and succeed just like our other Canadian companies, creating value to Canadians and contributing to the growth and development of the country’s economy.”
Mr. Li and his family have interests in businesses that span 52 countries; these businesses include ports, infrastructure, retail, telecommunications, energy and property.
Completion of the acquisition is conditional upon customary approvals under the Investment Canada Act and the Competition Act. It is expected that completion will take place before the end of the first half of 2017.
Upon completion, the intention of CKP is that Reliance will continue to be based in Ontario with the existing executive team managing the business.
This transaction was completed on July 13, 2017.