power assets

The decision of the minority investors of Power Assets Holdings to reject the revised takeover offer from Cheung Kong Infrastructure is a good step for shareholder rights.

It may take more than an enhanced dividend and improved share-swap ratio to win shareholder approval for the $12.4b merger, a deal tied to the reorganisation of Li's businesses.

The $4 billion to $5 billion deal is scheduled to launch on January 14 and is expected to be followed by a number of other large listings in the first half.

Power Assets says the listing of its Hong Kong electricity business in the form of a trust is scheduled for January 29. The aim is to sell up to 70% to public investors, which implies a potential deal size of up to $5.7 billion.