=MARKET BUZZ: CK Infra Likely Eyeing Acquisition After PAH Placing - Analysts
HONG KONG (Jan 10) -- CK Infrastructure Holdings’ move to raise funds by trimming holdings in Power Assets Holdings may signal preparation for a new acquisition, analysts say; PAH off 1.5% at HK$54.70 after saying controlling shareholder CKI agreed to place 43.8 million shares, or a 2.05% stake to independent places; CKI climbs 0.7% to HK$60.90. “We’ve seen continuous movement from CKI on M&As in the past. Therefore, it is believed that the share placement is a preparation for a new acquisition,” says Andy Wong, chief investment strategist at wealth-management company Harris Fraser; adds, he “won’t be surprised if more placements take place in future.” CKI to hold 35.96% in PAH after placing. Given rising borrowing costs, “we believe it is possible for CKI to further trim its stake to no less than 30% to have more cash available for future M&As,” says Dennis Ip, analyst at Daiwa Capital Markets.
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