Li takes over Dutch waste-to-energy firm

Deal worth US$1.25 billion.

The acquisition of AVR Afvalverwerking B.V. by a consortium led by Asia's richest man, Li Ka-shing, follows a US$412 million investment in New Zealand's Envirowaste, another waste processor. Both investments were made through Li’s Cheung Kong Infrastructure Holdings (CKI) that is leading the consortium.

AVR is a leading waste management company in Europe and has the largest energy-from-waste plant capacity on the continent. It has a 23% percent market share of the Netherlands' waste processing industry with stable revenue streams from long term contracts for gate fees and waste processing and from generated energy.

CKI said the acquisition fits in well with its investment requirements, generating immediate recurring cash flow with profitable and stable returns. CKI Chairman is Victor Li.

CKI and Cheung Kong Holdings Ltd both have a 35% stake in the consortium. Cheung Kong subsidiary Power Assets Holdings having 20% and the Li Ka Shing Foundation holding a 10% stake.

In March, the 85-year-old Li was listed as the eighth wealthiest person in the world by the Forbes rich list, with a net worth estimated at US$31 billion.