Husky Energy receives $1.34b from billionaire Li Ka-shing

Husky Energy receives $1.34b from billionaire Li Ka-shing

Li Ka-shing, Hong Kong’s richest man raised US$1.34 billion for Canadian oil and gas producer Husky Energy (TSE:HSE) after it reported a third consecutive quarter of losses, the firm announced yesterday.

Power Asset Holdings and Cheung Kong Infrastructure Holdings will purchase a 65 per cent stake in oil storage assets with a capacity of 4.1 million barrels of oil and 1,900km of pipeline in the Lloydminster region.

CKI Holdings and Power Asset Holdings are both part of Li’s large business empire which ranges from ports, energy assets and property in Asia to telecommunication businesses in Europe. Li holds a 29.31 per cent stake in Husky Energy.

Husky will own 35 per cent, CKI Holdings 16.25 per cent and Power Assets will own 48.75 per cent in the joint venture agreement.

Asim Ghosh, CEO of Husky said: “This transaction unlocks significant value and supports our objective of strengthening the balance sheet.”

The agreement was the second deal in the past year which CKI and Power Assets have joined into an energy asset agreement. In October, both companies paid $288 million to acquire Portuguese energy company, Iberwind Group.