CK: Port transactions enter a new phase, have invited mainland Chinese investors to discuss, difficult to complete before the end of the year
China Hong Kong Telecommunications Limited (hereinafter referred to as CK) has ruled out the possibility of completing this controversial transaction of selling its global ports to a BlackRock-backed consortium this year, but remains optimistic about the prospects of the transaction after inviting mainland Chinese investors to join.
CK's joint managing directors, Frank Liu, said at a analyst briefing following the release of mid-year results on Thursday that even if a binding agreement is reached within this year, due to the complexity of the transaction, it would be difficult to complete the deal within this year, and may take until next year or later to complete the transaction.
Frank Liu pointed out that the transaction involves 43 ports under CK, including two ports on the Panama Canal with strategic significance. If the transaction is completed, the business group founded by billionaire Li Ka-shing will receive more than 19 billion US dollars in cash.
Frank Liu said, "Our transaction is entering a new phase. As we have said, it includes discussions with a major strategic investor in China. I believe these discussions are likely to result in an agreement that is beneficial to all parties, including ourselves. Most importantly, this agreement will be able to obtain the approval of all relevant departments."
These remarks were made as the uncertain prospects of this transaction, which carries geopolitical risks, have become one of the symbols of the U.S.-China competition. CK missed the opportunity to sign a final agreement with the acquiring consortium before the deadline for exclusive negotiations expired on July 31.
According to sources, state-owned enterprises, China COSCO Shipping Group, through negotiations, have secured a strong role as a condition for joining the aforementioned acquiring consortium, which also includes Terminal Investment Ltd., owned by Italian billionaire Aponi.
Frank Liu said that although the negotiations took longer than expected, CK does not consider this particularly troublesome, as port operations performed well this year. The company announced that revenue from port and related services increased by 9% in the first half of the year, and EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 10%, mainly due to increased throughput and storage income in regions such as mainland China, Asia, the Middle East, Mexico, and Europe.
Original: www.toutiao.com/article/1840472731063299/
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