Li Ka-Shing Says Brexit Fallout Will Last For Years

August 12, 2016

NewsStandOnline.Net (12-August-2016): Hong Kong’s richest man, one of the biggest investors in the UK, hit a setback in his efforts to cut his reliance on Britain and warned the fallout from the nation’s decision to leave the European Union will last for years.

“The withdrawal of the UK from the EU will bring with it considerable challenge both for the UK and for Europe for at least the next two to three years,”CK Hutchison Holdings chairman Li Ka-Shing said in an earnings statement yesterday, his first public remarks on Brexit since the June 23rd referendum.

Li has much riding on Britain as the country is the biggest profit generator at the billionaire’s business empire.

His comments came hours after the Australian government signaled it would block a bid by one of his units for a local electricity distributor, a deal that could have helped the 88-year-old tycoon diversify away from the UK.”

Li Ka-Shing Says Brexit Fallout Will Last For Years

After Brexit, investors are keen on knowing what the impact to Li Ka-Shing’s companies will be, as there are uncertainties on the UK’s economy and currency,” said Alex Au, managing director at Alphalex Capital Management in Hong Kong.

he UK accounted for 39 per cent of CK Hutchison’s earnings before interest and taxes and 21 per cent of revenue during the first half of the year.

Still, Ebit at those businesses, which include ports, retail, infrastructure and telecommunications, rose 4 per cent from a year earlier to HK$11.5 billion ($1.5 billion).

“We are just a couple of months after Brexit. So far the numbers are pretty good, so we’re cautiously optimistic,” Li’s heir and eldest son, Victor, told analysts in an earnings briefing.

“On our existing business, we’ll continue to look at new opportunities. I don’t think we’ll put the UK off of our list.”