HONG KONG: Hong Kong conglomerate CK Hutchison said Monday (Jul 28) it was considering inviting a Chinese “major strategic investor” to join a United States-led consortium negotiating the sale of its global ports business outside China, including operations at the Panama Canal.
The firm said in March it was offloading the ports – including operations in the vital Central American waterway – to a group led by asset manager BlackRock for US$19 billion in cash.
The consortium was to include BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company.
A Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997.
The sale was seen as a political victory for US President Donald Trump, who had vowed to “take back” the Panama Canal from alleged Chinese control, prompting Beijing’s ire.
China’s market regulator said in March it was reviewing the deal.
In May, Hutchison co-managing director, Dominic Lai told shareholders that Terminal Investment was the main investor. Its parent company is led by Italian shipping scion Diego Aponte.
Aponte’s family reportedly has a longstanding relationship with the owner of CK Hutchison Li Ka-shing, who is also Hong Kong’s richest man.
“(CK Hutchison) remains in discussions with members of the consortium with a view to inviting (a) major strategic investor from (China) to join as a significant member of the consortium,” CK Hutchison said in a stock exchange filing Monday.
The firm added that changes to the consortium’s membership and deal structure will be needed for the deal “to be capable of being approved by all relevant authorities”.
It said the “period for exclusive negotiations” mentioned in the March announcement had expired, but discussions will continue.
It did not name the major investor. The deadline for their exclusive negotiation period ended on Jul 27.
