A Cheung Kong Property Holdings Ltd. subsidiary plans to acquire a Canadian building equipment services provider for approximately C$2.82 billion, subject to adjustments.
CKP (Canada) Holdings Ltd. signed a conditional deal to purchase 3216444 Nova Scotia Co. from Canada Water Tanks Sarl. Cheung Kong Property will guarantee the acquisition of the 320,394,489 common shares of the target company.
3216444 Nova Scotia and its subsidiaries engage in the business of providing water heaters, heating, ventilation and air conditioning equipment, comfort protection plans, and other services to homeowners primarily in Ontario. The group operates in Manitoba, Saskatchewan and Alberta.
If the deal closes, Cheung Kong Property intends to sell up to 25% of the acquired shares in 3216444 Nova Scotia to Cheung Kong Infrastructure Holdings Ltd., subject to certain approvals.
Cheung Kong Property said the transaction aligns with the group's global investment strategy. It will allow the company to diversify into other business sectors for better recurring revenue streams and limit the cyclical cash flows related to property development.