CK Hutchison seeks mainland strategic investor for US$23 billion ports deal

Hong Kong tycoon Li Ka-shing’s CK Hutchison Holdings has said it plans to invite a major strategic investor from mainland China to join as a “significant member” of a consortium seeking to buy its global port stakes, after a deadline for exclusive talks on the US$23 billion deal expired on Sunday.

The controversial transaction involved CK Hutchison selling stakes in 43 ports, including two at either end of the Panama Canal, to the consortium led by Terminal Investment Limited, an affiliate of the world’s largest container line, MSC, and American asset manager BlackRock.

The July 27 deadline was set 145 days from the company’s March 4 exchange filing that first announced the exclusive negotiation period.

Confirming the expiry of the negotiation period, CK Hutchison said on Monday: “The Group remains in discussions with members of the consortium with a view to inviting [a] major strategic investor from the [People’s Republic of China] to join as a significant member of the consortium.

“Changes to the membership of the consortium and the structure of the transaction will be needed for the transaction to be capable of being approved by all relevant authorities.”

It said it would allow time for discussions to achieve the new arrangements, while reiterating it would not proceed with any transaction that was not approved by “all relevant authorities”.