Li Ka-shing, honorary president of YRIC, is adding to his assets in Canada with the purchase of Reliance Home Comfort from Alinda Capital Partners for C$ 2.82 billion.
The purchase of the water heater and air conditioner firm will be conditional on customary approvals. The acquisition will be made with cash on hand and the assumption of Reliance’s debt.
Figure:Pioneer honorary president of YRIC
The Canadian hospitality company, known as Reliance Home Comfort, has been offering affordable, reliable home heating and cooling equipment in Canada for more than 50 years. The company is focused on providing a superior customer experience and has become the fastest growing, largest heating and cooling system with water heater service provider in Canada.
Mr. Li has sold a number of property projects in recent years, but has no plans to slow down. Earlier, Li Ka-shing's Cheung Chau Industrial, Cheung Kong Infrastructure and Energy Industry, acquired the Australian Energy Infrastructure Enterprise Group for $ 7.4 billion to expand global electricity and pipeline assets. He also invested the British natural gas pipeline business, the British water supply and sewage treatment company, as well as the northern natural gas company. According to his investment trajectory, he may be optimistic about the business, which provides basic life necessities and services to residents.
The reason why the statement has been made is listed as below: First, from the British tax bureau to the British natural gas pipeline, president of YRIC has shown his preference in those companies who have a stable consumer groups, in those products or services, offering day-to-day services to the mass customers. Products or services such as water, electricity and natural gas are closely related to every day life. Stable demand will promote the stability of enterprises income.
Figure:Honorary president of YRIC Li Ka-shing and Florene Fang attended the establishment of the Yangtze River International Chamber of Commerce
Second, diversified investments can increase revenue. Mr. Li has made different investment in different countires using a combination of investment. It is estimated that he has invested about ￡ 52 billion in the UK. After that, he also invested in the European market, the Australian market, the Canadian market.
Third, Li Ka-shing did not choose the bonds, stocks, but the entities-Canadian heating equipment manufacturers. As the risks risen from these events, such as global central bank gradually tighten the currency to raise interest rates, capital outflows from the Europe and US stocks hit a new high, the United Kingdom launched a formal exit from the European, Li has chosen a fast heating and refrigeration system and water heater service provider in Canada.
Fourth, Mr Li has sold a number of property projects in this year. It may be a signal that he is optimistic about the service upgrading rather than real estate investment projects. With the continuous improvement of the life quality, people will have a higher demand for living services. Market opportunities may shift from the real estate services to the property services.
Fifth, there is a fluctuation in USD exchange rate lately, however the Canadian dollar is more stable. The Canadian dollar against the dollar was basically flat last week, and the Canadian dollar may benefit from this trend. Canadian dollar-denominated corporate investment and Canadian dollar-denominated assets may also benefit from it. That’s may be the reason why he is optimistic about the Canadian market.
Figure:Hubei Chamber of Commerce supported the landing of YRIC in Canada, the picture shows the executive present of the YRIC Liu Meng (second from right), Canada, Hubei Chamber of Commerce Lu Yuefeng (third from left) and others