Merger of CKI and Hanson Subsidiaries
Forms Hong Kong's Largest Concrete and Aggregate Supplier
15 February, 2004 -- Hong KongCheung Kong Infrastructure Holdings Limited ("CKI") is pleased to announce a merger of its concrete and quarry operations in Hong Kong between its subsidiary, Anderson Asia (Holdings) Limited ("Anderson"), and the Hong Kong arm of Hanson PLC ("Hanson"), one of the leading building materials suppliers across the globe.
At present, Anderson and Hanson are already the two leading concrete and aggregate suppliers in Hong Kong. The merged entity will consolidate and rationalize the quarry and concrete operations of both companies in the territory creating the largest supplier in Hong Kong, with over one third market share.
The partnership will be on a 50/50 basis and the merged entity will continue to carry on a long-term contract with Green Island Cement ("GIC"), another subsidiary of CKI, for the supply of cement.
"CKI is pleased to partner with Hanson, a renowned global market leader in building materials supplies with extensive international experience. The challenges in Hong Kong's property and construction markets have affected the price and volume of infrastructure materials in recent years. The merger, which consolidates the aggregate and concrete operations of Anderson and Hanson in Hong Kong, will maximize efficiency in our production of infrastructure materials," said Mr. Lambert Leung, Chief Executive Officer of CKI Materials.
Mr. Patrick O'Shea, Chief Executive of Hanson Continental Europe and Asia, said "Hanson is extremely pleased to work with CKI in this joint venture. CKI is one of the key infrastructure and development players in the region with tremendous local experience and expertise. This merger further strengthens our relationship with CKI which stretches back over 20 years"
The transaction is expected to be closed by the second quarter of this year, subject to due diligence and other completion conditions. Upon completion of the transaction, CKI and Hanson will each appoint 3 directors to the board of the new company, with Mr. Lambert Leung of CKI and Mr. Tarmo Saar of Hanson becoming Chairman and Chief Executive Officer respectively.
CKI is the largest publicly listed infrastructure company in Hong Kong with investment in Hongkong Electric, infrastructure investments, infrastructure materials and infrastructure-related businesses. The Company has operations in Hong Kong, Mainland China, Australia, Canada and the Philippines.
Hanson is the largest producer of aggregates and concrete pipe & products in the world and is the third largest producer of ready-mixed concrete. Its other principal products are clay bricks and concrete roof tiles and its operations are in the UK, continental Europe, North America, Asia Pacific and Australia.
- End -