Americas News
Hong Kong's CK Hutchison to Sell Panama Port Stake After Trump Administration Pressure
Hong Kong-based CK Hutchison has agreed to sell its stake in ports in Panama after pressure from the new Trump Administration.
The company has agreed to sell its 90% interests in Panama Ports Company - which owns and operates the ports of Balboa and Cristobal - to a consortium of BlackRock, Global Infrastructure Partners and Terminal Investment Limited, it said in a statement on its website on Tuesday.
The firm will also sell its 80% interest in subsidiary and associated companies owning, operating and developing a total of 43 ports in 23 countries.
The move comes after criticism of Panama by the new administration in the US. President Trump has referred to Chinese involvement in Panama's ports as a potential national security risk to the US, as well as criticising the fees charged to US vessels for use of the Panama Canal.
CK Hutchison co-managing director Frank Sixt denied the move had anything to do with the political environment in Panama.
"This Transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received," Sixt said.
"As a result, the Transaction valuation agreed in principle is compelling, and the Transaction is clearly in the best interest of our shareholders.
"After adjusting for minority interests and repayment of certain shareholder loans due from HPH to CK Hutchison, the Transaction would be expected to deliver cash proceeds in excess of US$19 Billion to our Group.
"I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports."
