Hong Kong: Hong Kong tycoon Li Ka-shing’s attempt to sell CK Hutchison Holdings Ltd ports in the Panama Canal and other locations around the world has slowed as negotiators try to untangle a web of issues hampering an agreement, including the role played by China’s biggest shipping company.
While talks are ongoing, the timing of any potential deal is unknown because of uncertainties such as the structure of the buying consortium, people familiar with the matter said.
Unresolved matters include what kind of role China Cosco Shipping Corp will play and how to win approval from various national regulators since the ports for sale span the globe, the people said, asking not to be identified discussing private information.
In a bid to win Beijing’s blessing for the controversial deal, the buyer group that includes BlackRock Inc’s Global Infrastructure Partners and Italian billionaire Gianluigi Aponte’s Terminal Investment Ltd (TIL) has been in talks with Cosco to join their consortium.
Cosco wants veto rights in the entity that will control the portfolio of ports, Bloomberg News reported in July.
Negotiations have been going for months without clear progress toward a finalised structure and plan, the people said, as the parties involved in talks each have their own interests and agendas.
Despite the sluggish progress, some buyers, including the Aponte family, are still committed to finding a way to complete the transaction because they regard the deal as important for growth, one of the people said.
Spokespeople for Hutchison, TIL and Cosco didn’t respond to requests for comment. A representative for BlackRock declined to comment.
CK Hutchison in August ruled out the likelihood of the sale of 43 ports being completed this year, but remained optimistic about its prospects. — Bloomberg
