Li Ka-shing sells 43 port assets, cashing out over 19 billion USD, including the Panama Canal

News Source: Ming Pao

CK Hutchison Holdings, owned by Li Ka-shing, announced that it will sell its 80% stake in Hutchison Port Holdings S.a.r.l. and Hutchison Port Group Holdings, which hold 80% of the equity in Hutchison Port Group, to BlackRock, Global Infrastructure Partners (GIP), and Terminal Investment Ltd (TiL) for a total transaction amount of USD 14.212 billion (approximately MYR 63.6 billion). It is expected that, along with the recovery of shareholder loans, over USD 19 billion (approximately MYR 85 billion) can be recouped.

HPHS and HPGHL collectively hold the entire 80% actual equity of CK Hutchison in Hutchison Port Group. Hutchison Port Group has subsidiaries and joint ventures that own, operate, and develop a total of 199 berths across 43 ports in 23 countries, along with all management resources, operational businesses, container terminal systems, information technology, and other systems related to controlling and operating the relevant ports.

This sale does not involve the operations of Hutchison Port Trust responsible for the ports in Hong Kong, Shenzhen, and South China, nor does it include mainland port assets. CK Hutchison has signed a 145-day exclusive negotiation period with the BlackRock-TiL consortium, which has also reached a principle agreement to acquire a 90% stake in Hutchison Port's operations in Panama—Panama Ports S.A.

CK Hutchison stated that this transaction is classified as a "very significant sale" and requires shareholder approval. Group Co-Managing Director Canning Fok stated, "This transaction was achieved in a fast-paced, low-profile, and highly competitive environment. We received multiple bids and letters of intent, so the valuation of this principle agreement is very attractive and fully aligns with the best interests of shareholders." He emphasized that this transaction is purely a business decision and is unrelated to recent political news regarding Panama ports.

Buyer: Global Investment Giants Recognize Transaction Value

As one of the buyers, BlackRock Chairman and CEO Laurence Fink stated, "This agreement is a strong testament to the strength of the joint investment platform between BlackRock and GIP, showcasing our ability to provide diversified investment opportunities for our clients. These world-class ports are crucial for global economic growth. Through close cooperation with CK Hutchison, MSC/TiL, and various governments, we have become the preferred partner for many investors seeking long-term stable capital. This investment will create long-term value for our clients."

GIP Chairman and CEO Bayo Ogunlesi stated, "We have a long-standing and fruitful partnership with TiL and MSC, and we are very honored to once again collaborate to acquire a portion of Hutchison Port's assets. GIP has extensive experience in port investment and operations, and we share a common vision with our partners to ensure that these assets maintain world-class operational standards, enhance competitiveness and efficiency, and remain customer-centric."

TiL Chairman and MSC Group President Diego Aponte stated, "We have a long-term partnership with Hutchison Port, characterized by mutual respect and recognition, and we are also very pleased to establish a solid partnership with BlackRock and GIP."We highly recognize the management team of K. Wah Ports and look forward to them joining our big family after the transaction is completed. The port industry is our core business, and we believe this investment in K. Wah Ports will be a decision of great commercial value