Cheung Kong Infrastructure Holdings and Power Assets Holdings acquire stake in assets from Husky Energy

On July 18, 2016, Cheung Kong Infrastructure Holdings Limited (CKI), a Hong Kong-based global infrastructure company that holds diversified investments in energy infrastructure, transportation infrastructure, water infrastructure, waste management, and waste-to-energy and infrastructure-related business, and Power Assets Holdings Limited (PAH), a Hong Kong-based global investor in power and utility-related businesses with investments in electricity generation, transmission and distribution, renewable energy, and energy from waste and gas distribution, completed their $1.7-billion acquisition of 65-per-cent indirect ownership interest in select heavy oil pipeline and storage assets from Husky Energy (Husky) in Alberta and Saskatchewan, and related joint-venture, financing and commercial arrangements. 

The acquired assets include approximately 1,900 kilometres of pipeline in the Lloydminster region, 4.1-million barrels of oil storage capacity at Hardisty and Lloydminster, and other ancillary assets. In addition, a new limited partnership has been formed, of which CKI owns 16.25 per cent, PAH owns 48.75 per cent and Husky owns 35 per cent, and will remain the operator. 

CKI and PAH were represented by Stikeman Elliott LLP with a team that included Frederick Erickson, Chrysten Perry, Kurtis Reed, Brandon Leitch, Zhuo Chen (M&A, energy commercial), Brian Hansen (offshore arrangements), David Weekes (tax), Michael Kilby (foreign investment), Leland Corbett and Amy Nugent (banking), Allison Sears and David Price (energy regulatory), Michael Dyck (construction), and Catherine Grygar and Anousheh Torabi (real estate) and Cheryl Rea (employment). 

Husky was represented by an in-house counsel team led by James Girgulis, Senior Vice President, General Counsel and Secretary, David Putnam, Managing Counsel, and David Bramwell, Senior Counsel; Torys LLP with a team that included Derek Flaman, Peter Danner, David Cuschieri and Amy Maginley (M&A), Kevin Fougere, David Kolesar and Tyrel Henderson (financing) and Omar Wakil (foreign investment); Blake, Cassels & Graydon LLP with a team that included Ben Rogers, Chris Harris, Christine Yick and Thomas Craig; Felesky Flynn LLP with a team that included John Burghardt, Brett Anderson and Matthew Kraemer; and Dentons Canada LLP with a team that included Bernard Roth and Simon Kupi (energy regulatory). 

BMO Capital Markets, independent financial adviser and fairness opinion provider to the Special Committee and the Board of Directors of Husky Energy, was represented by Davies Ward Phillips & Vineberg LLP with a team that included Vincent Mercier and Evan Griffith (corporate/M&A). 

The Independent Committee of the Board of Husky was represented by Osler, Hoskin & Harcourt LLP with a team that included Dan Kolibar, Frank Turner (M&A), Ted Thiessen (tax), and Janice Buckingham and Paula Olexiuk (energy commercial).

CIBC as administrative agent and the credit agreement lenders were represented by Norton Rose Fulbright Canada LLP with a team that included Rick Borden, Wayne Fedun, Marlow Gereluk, Dion Legge, Adam Lamoureux and Mario Babic.

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