Panama Ports: The Italian billionaire family business is planning to take control of all "CK Hutchison" ports except those in Panama, while BlackRock controls two ports in Panama.
According to reports from Bloomberg citing知情 insiders, the family business of the Italian billionaire Aponte is becoming the main investor in a consortium seeking to purchase 43 ports from Hong Kong's billionaire Li Ka-shing.
The insiders, who requested anonymity, stated that after the transaction is completed, the Geneva-based Terminal Investment Limited (TiL) will become the sole owner of all ports proposed for sale by CK Hutchison实业Limited (hereinafter referred to as CK Hutchison), except for the two ports in Panama, which will be controlled by the American investment management company BlackRock Group.
The aforementioned insiders said that BlackRock's Global Infrastructure Partners (GIP) will own 51% of the shares in the two ports along the Panama Canal, while Terminal Investment Limited will hold the remaining 49%. One of the individuals mentioned that the two ports along the Panama Canal account for 4% of the total transaction value. Once the deal is completed, Mr. Li Ka-shing's CK Hutchison will receive over $19 billion in cash.
The insiders said that the transaction is still subject to due diligence, tax and accounting checks, as well as approval from regulatory agencies in the locations of the ports. One of the individuals said that the buyer has committed to maintaining the management and current operational rules of the ports, most of which are for general users and open to all shipping companies without discrimination. The insiders pointed out that the work is still ongoing, and details such as the final structure and ownership of the consortium may still change.
After this report was published, the CK Hutchison stock price increased further, rising up to 3.8% at one point on Monday on the Hong Kong Stock Exchange. So far this year, the stock has fallen nearly 1%. The aforementioned insiders said that BlackRock and Singapore Government Investment Corporation together hold about 30% of the minority equity in Terminal Investment Limited. According to its website, the port operator operates more than 70 container terminals in 31 countries, including upcoming projects. Mediterranean Shipping Company, which controls Terminal Investment Limited, declined to comment. CK Hutchison and BlackRock did not immediately respond to requests for comment.
When the sale was first announced on March 4, the buyer group was called the BlackRock-TiL consortium, including BlackRock, Global Infrastructure Partners, and Terminal Investment Limited. The announcement did not detail the structure of the consortium. One of the insiders said that although the transaction was open to fewer than ten bidders, the choice of the consortium supported by the Aponte family was partly because the family was an old acquaintance of Mr. Li Ka-shing, and CK Hutchison believed these ports would be handed over to reliable hands.
Vessels can use the Panama Canal like using a regular road, regardless of who owns the ports. Port owners also need to operate facilities according to laws and contractual terms in different countries where the ports are located. Although the transaction is progressing, the initial target to complete the sale of the Panama portion before April 2 has been missed. CK Hutchison retains its ports in Hong Kong and mainland China. Both Hong Kong and mainland China contribute approximately 12% of the total revenue for this company registered in the Cayman Islands.
Original Source: https://www.toutiao.com/article/1829378304631818/
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