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Tue 9 Jun 2015 12:34 PM

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Power Assets sells $991m HK Electric stake to Qatar

Qatar has previously invested in Hong Kong with department store operator Lifestyle International and commercial bank Agricultural Bank of China

Power Assets sells $991m HK Electric stake to Qatar
(Getty Images)

Power Assets Holdings Ltd said it sold a stake worth $990.79 million (HK$7.68 billion) in HK Electric Investments Ltd to Qatar Investment Authority, as the Hong Kong power utility eyes new acquisitions in the global energy industry.

Power Assets said its holding in HK Electric fell to 33.37 percent after it sold a 16.53 percent stake, remaining as the controlling shareholder of the power supplier.

A HK$455 million loss will be recorded as a result of the deal, led by the difference between the net proceeds and the carrying value of the stake, the company said in a filing to the Hong Kong bourse.

Qatar has sought opportunities in Hong Kong with investments in department store operator Lifestyle International  and commercial bank Agricultural Bank of China.

Shares of Power Assets fell 4.1 percent to an 8-month low of HK$68.2 in early afternoon trade, deeper than a 0.9 percent fall in the benchmark Hang Seng Index.

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