As scrutiny mounts over Hong Kong-based CK Hutchison’s sale of its Panama ports, experts say there is a patent lack of legal tools governing commercial transactions that authorities can use to stop the deal and they are highly sceptical the national security legislation will be invoked.
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But the conglomerate owned by tycoon Li Ka-shing’s family would have to ensure full compliance with rules governing listed companies and secure the green light from its shareholders for the deal, they said.
Hutchison has been beset by escalating warnings from the pro-establishment camp in the city after Beijing’s agencies overseeing Hong Kong reposted scathing commentaries by a newspaper urging it to reconsider the sale to a consortium led by US investment firm BlackRock, the world’s biggest asset manager.
In a surprise move earlier this month, CK Hutchison announced it was selling all its port stakes, except for those in China, which would give the consortium control of the two ports in the Panama Canal and 41 others across 23 countries.
The deal will mean the consortium paying US$23 billion and the Li subsidiary walking away with US$19 billion in cash.
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Asked about the deal on Tuesday, Chief Executive John Lee Ka-chiu said society’s concerns over the sale deserved attention and the transaction “must comply with the legal and regulatory requirements” as he urged foreign governments not to engage in “abusive use of coercion or bullying tactics” in international trade relations.
The comments fuelled talk already spreading in some circles that the authorities were reviewing the deal as debate centred on the laws that could be invoked if Hong Kong or mainland authorities did actually scrutinise it.