IJInvestor’s Utilities Acquisition of the Year in Europe was awarded to CK Infrastructure’s acquisition of Phoenix Energy with judges applauding the deal for being done in a difficult environment for gas assets.  

A consortium of CK group companies, including CK Infrastructure, acquired Phoenix Energy which operates the largest of 3 gas distribution networks in Northern Ireland. The consortium purchased the company from NatWest and Utilities Trust of Australia (UTA) for HK$7.4 billion ($945m).  

The sale process began last summer (2023) with non-binding offers submitted in December. NatWest Group Pension Fund (GPF) entered binding talks to divest its 50% stake in February (2024). 

Phoenix Energy was established in 1996, the network covers about 48% of the population of Northern Ireland, including Greater Belfast, and accounts for about 78% of all gas connections in the region.  

As the first and largest regulated gas distribution network in Northern Ireland, Phoenix plays a key role in the region’s decarbonisation efforts and continues to facilitate the energy transition path. 

The judges thought CKI was a natural acquirer of the company as it has a lot of gas experience. CKI has a comprehensive portfolio of global investments which include a number of UK investments: Northern Gas Networks, Wales & West Utilities, UK Power Networks, Seabank Power and Northumbrian Water. 

Against the backdrop of ESG concerns, during the due diligence process, the CKI consortium and its advisers worked to ensure the proposed investment in the business is not only attractive long-term, but will also play an important role in Northern Ireland’s pathway towards net zero. 

Phoenix’s distribution network is able to catalyse growth of renewable gas industries across the country, meaning the company has positioned itself well for the future. It already plays a key role in the reduction of greenhouse gas emissions today by facilitating the switch from heating oil to natural gas for all its customers. 

Additionally, with Northern Ireland having one of the highest agricultural stocking densities in Europe, coupled with political desire to support sustainable farming, there is significant biomethane production potential in the country – which in the long term will help with further decarbonisation of the network. 

Judges felt that it is complex to sell a gas network in the current ESG environment which stood them out from other submissions in this category this year.