Cheung Kong Infrastructure is selling its overseas port business and plans to invite Chinese state-owned enterprises to become key members.

CKH and Port Transaction Intends to Invite Chinese Investors, New Arrangement Will Make Them "Important Members"

The exclusive negotiation period for CKH's sale of 43 overseas port businesses, including the Panama Canal ports, to a consortium composed of US and Italian funds TiL has expired. However, CKH announced that negotiations among consortium members are still ongoing, and it intends to invite major strategic investors from mainland China to join, who will become "important members" of the consortium. The transaction structure will be changed to obtain approval from regulatory authorities and departments.

On the morning of the 28th, CKH Limited announced that it did not reveal the specific Chinese investors intended to be invited. However, foreign media previously reported that China had requested the inclusion of COSCO Shipping Group (COSCO) in the port transaction. Last week, Bloomberg News cited unnamed sources saying that COSCO had requested a key role in the new consortium, with veto power or equivalent authority, to ensure the approval of this transaction by China. The report also mentioned that COSCO believes this could prevent any decisions that might harm China's interests. However, the TiL consortium only agreed that COSCO would have full access to operational information, and no final decision has been made on other powers that COSCO requested in the consortium.

Discussions regarding the addition of new members to the transaction are still ongoing. CKH's announcement stated that the group intends to "reserve sufficient time" for discussions to reach a new arrangement. Under the new arrangement, the consortium members and transaction structure will need to be changed to allow the transaction to receive approval from all relevant regulatory authorities and departments. CKH reiterated that it will not proceed with any transaction before obtaining approval from all relevant regulatory authorities and departments.

CKH announced in early March that it had reached a preliminary agreement to sell its overseas port businesses held by Hong Kong Ports in 23 countries, including two ports located at the Panama Canal, to a consortium called BlackRock-TiL, which was formed by BlackRock, the US investment management company Global Infrastructure Partners, and the Italian Aponte family shipping giant MSC. The deal was valued at USD 17.765 billion, and the 145-day exclusive negotiation period ended yesterday.

Source: rfi

Original: https://www.toutiao.com/article/1838884899734603/

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