CKH HOLDINGS responds to port transactions: It is absolutely impossible to conduct under any illegal or non-compliant circumstances

Zhitong
2025.05.12 23:04

CK Hutchison Holdings responded to questions regarding the sale of its global port business, emphasizing that the transaction could never occur in an illegal or non-compliant manner. CK Hutchison originally planned to explain the port transaction at the shareholder meeting on May 22, but due to concerns from shareholders and the media, this statement was issued. The transaction must meet conditions such as legal and regulatory approvals and shareholder consent, involving 43 ports and smart terminal systems across 23 countries. The transaction is currently under review, and if not approved, CK Hutchison may face substantial penalties for breach of contract

According to Zhitong Finance APP, late at night on May 12, CK Hutchison Holdings Limited (CKH) under Li Ka-shing issued a statement in response to widespread concerns and questions regarding the sale of its global port business assets. CKH (00001) announced that it originally planned to discuss the port transaction at the shareholders' annual meeting on May 22, but in light of recent inquiries from shareholders and the media, CK Hutchison Holdings Limited hereby states: this transaction can never occur under any illegal or non-compliant circumstances.

CKH clearly stated that the transaction must meet multiple preconditions, including approval from legal and regulatory authorities, shareholder consent, and the exclusion of illegal situations. This clause was already outlined in the announcement on March 4, 2025. The transaction targets cover 43 ports, 199 berths, and smart terminal systems across 23 countries in Asia, Europe, and America, with the 90% stake in the Panama Port Company being particularly critical. If the transaction is completed, the ports of Balboa and Cristobal at both ends of the Panama Canal will be controlled by the American BlackRock consortium.

It is reported that on March 4, CKH announced that it had reached a principle agreement with the consortium led by BlackRock to sell its core global port business assets. Due to the strategic nature of this transaction, concerns have been raised from various sectors, prompting the State Administration for Market Regulation to initiate an antitrust review on March 28, temporarily halting the transaction process. The Ministry of Foreign Affairs also responded on May 6, stating that China will "lawfully safeguard national sovereignty and market fairness" and oppose any commercial actions that harm national interests.

As an important port operator in Hong Kong, CKH's asset transaction involves antitrust review and national security review, reflecting the country's emphasis on the safety of critical infrastructure. If this transaction is deemed a threat to critical infrastructure, it will have a significant impact on CKH's business operations. The transaction is still in the review stage, and CKH must wait for the final decision from Chinese regulatory authorities. Market analysis suggests that if the transaction fails to pass the review, CKH may face hefty penalties; if pushed through forcefully, it may trigger stricter regulatory measures. Additionally, the Panamanian government has not yet expressed its latest position on the change of port control, and its stance may become a key variable

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