Singapore's PSA International is exploring the sale of its 20% stake in CK Hutchison's ports business, two people with knowledge of the matter said, joining the Hong Kong conglomerate in its controversial plans to sell.
Tycoon Li Ka-shing's CK Hutchison announced last month it would sell its 80% holding in the business which includes two ports along the strategically important Panama Canal to a BlackRock-led consortium. The holding has an equity value of $14.2 billion.
U.S. President Donald Trump hailed the deal as a "reclaiming" of the canal. Chinese state media, however, have criticised it as a betrayal of China's interests and the country's market regulator has launched an antitrust review.
Whether PSA, a ports operator wholly owned by Singapore state investor Temasek, ultimately decides to sell will depend on whether CK Hutchison goes ahead with the transaction, the two people said. CK Hutchison and the BlackRock-led consortium have agreed to exclusive talks for 145 days.
The people, who were not willing to be identified due to the sensitivity of the issue, declined to comment on a potential sale price for PSA's stake.
PSA declined to comment. CK Hutchison did not immediately respond to a request for comment.
The deal between CK Hutchison and the BlackRock consortium encompasses 43 ports in 23 countries. The business has an enterprise value, which includes debt, of $22.8 billion.
Overall the Hong Kong conglomerate has interests in 53 ports. Ports in Hong Kong and mainland China were not included in the deal.
PSA bought its 20% stake for $4.4 billion in 2006 and has looked at selling previously. Reuters reported in late 2022 that PSA weighed a potential sale. But the two sources said it put the process on hold months later after global shipping activity weakened.
Outside of its stake in CK Hutchison, PSA has 70 terminals in 45 countries, including its two flagship ports in Singapore and Belgium, according to its website.
(Reuters)
