Li Ka-shing's Eversholt Signs $693 Million Deal for New Trains

  • Spain's CAF will manufacture 281 trains to be leased to Arriva
  • Second major deal since Li acquired Eversholt last April

Cheung Kong Infrastructure Holdings Ltd’s Eversholt Rail Group has inked a deal worth 490 million pounds ($693 million) to manufacture, procure and lease new trains, its second major deal since Hong Kong billionaire Li Ka-shing acquired the British rail lessor last April.

The deal would involve an order for 281 vehicles with Spain’s Construcciones y Auxiliar de Ferrocarriles SA, also known as CAF. The trains will be leased to Deutsche Bahn AG’s Arriva Rail North Ltd. and will enter service by December 2019 on routes in the north of England, the company said in a statement Monday.

Li Ka-shing’s flagship CK Hutchison Holdings Ltd., along with CKI, formed UK Rail Group to acquire Eversholt for an equity value of about 1.1 billion pounds last April, part of Li’s attempt to reorganize his business empire before handing power to his eldest son Victor Li. The tycoon also has ventured into aircraft leasing in recent years.

— With assistance by Clement Tan

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