Hong Kong-based Cheung Kong Infrastructure (CKI) is planning to acquire EnviroWaste, which is the second-largest waste management company in New Zealand.

The deal to acquire the company by the Chinese firm, which was founded by Asia's richest men, Li Ka-shing, will be reviewed by the Overseas Investment Office. CKI has entered into an agreement with the Australian equity firm, Ironbridge Capital for the acquisition of EnviroWaste.

EnviroWaste employs about 400 people and has customer base of about half a million that includes commercial and residential customers across New Zealand. CKI is expected to pay about 490 million in cash and accept $11m in lease obligations for acquiring the company. CKI notified the stock exchange that it has agreed to the net asset valuation of the NZ-based company was $119m.

"The acquisition reflects the company's strategy of investing in infrastructure opportunities around the world, leveraging the company's strong financial position," CKI wrote in a filing with the Hong Kong Stock Exchange.

Li Ka-shing's son, Li Tzar-kuoi is chairman of CKI, which will be able to expand its presence in New Zealand if the deal is approved by the regulators. CKI had earlier purchased Wellington power lines business for $785m from Vector in 2008.