One of the largest operators of global port terminals said it has offered a stake in its pending sale to a Chinese investor.
In a filing with the Hong Kong Stock Exchange, CK Hutchison said its planned sale of dozens of port facilities would include a major strategic investor from mainland China.
The company (0001.HK) in March announced plans to sell more than 40 container terminals under its Hutchison Port Holdings unit to a consortium led by BlackRock, the U.S. asset manager, that includes Geneva-based shipping line MSC, for $23 billion.
But Beijing said it would block the transaction if it didn’t get a cut of the deal.
Published reports identified the investor as Chinese maritime conglomerate Cosco, which had been identified by the U.S. as an arm of China’s military that had used unfair trade practices to dominate the shipping and shipbuilding industries.
The filing stated that the exclusive negotiation period with the consortium regarding the sale of Hutchison Ports Group had expired but that discussions with members of the group continue.
The reports said Cosco could receive a stake in 41 port properties except the pair near the Panama Canal that the Trump administration claimed are under Chinese influence.
The companies did not respond to requests by FreightWaves for comment.
Find more articles by Stuart Chirls here.
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