Hutchison sells 43 ports for $22.8 billion
On March 4, CK Hutchison announced that it had reached an agreement in principle with a consortium of BlackRock, BlackRock's Global Infrastructure Partners (GIP) and Mediterranean Shipping's (MSC) terminal operator TiL. The Blackrock-TIL consortium will acquire the core assets of Changhe's global ports business.
Changhe sells 90% interest in Panama Ports Corporation (PPC) to Blackrock-TIL Consortium. PPC owns and operates the ports of Balboa and Cristobal in Panama.
Changhe intends to sell to the consortium all its shares in Hutchison Port Holdings (HPHS) and Hutchison Port Group Holdings (HPGHL), which together hold Changhe's 80% interest in the Hutchison Port Group. Hutchison Ports owns and operates 199 berths and related assets in 43 ports in 23 countries around the world.
Mr Chang stressed that the sale did not include shares in the HPH Trust, which operates ports in Hong Kong, Shenzhen and southern China, or any mainland Chinese ports.
According to the announcement, the sale of assets is valued at approximately $22.8 billion and is expected to generate cash proceeds of more than $19 billion for Changhe.
Frank Sixt, joint managing director of Changhe, said: "This transaction is a quick and prudent outcome, following the selection of numerous bids and expressions of interest, and is in the best interests of shareholders."
Frank Sixt also stressed that the deal was commercial and had nothing to do with recent political news about Panama's ports.
Larry Fink, Chairman and CEO of BlackRock, said: "This agreement is a strong demonstration of the strength of BlackRock and GIP's combined platform and our ability to offer differentiated investments to our clients. These world-class ports are driving global economic growth and we are excited to be part of this investment."
Diego Aponte, Chairman of TiL and President of MSC, said: "We have a long history of cooperation with Hutchison Ports. If this deal is completed, we look forward to having them join our family." "We are very focused on the port industry and the acquisition of Hutchison Ports is a very viable investment commercially."
Bayo Ogunlesi, Chairman and CEO of GIP, stressed: "With GIP's extensive experience in port ownership and operation, we will work together with our partners to focus on the development of these ports."
Changhe sells 90% interest in Panama Ports Corporation (PPC) to Blackrock-TIL Consortium. PPC owns and operates the ports of Balboa and Cristobal in Panama.
Changhe intends to sell to the consortium all its shares in Hutchison Port Holdings (HPHS) and Hutchison Port Group Holdings (HPGHL), which together hold Changhe's 80% interest in the Hutchison Port Group. Hutchison Ports owns and operates 199 berths and related assets in 43 ports in 23 countries around the world.
Mr Chang stressed that the sale did not include shares in the HPH Trust, which operates ports in Hong Kong, Shenzhen and southern China, or any mainland Chinese ports.
According to the announcement, the sale of assets is valued at approximately $22.8 billion and is expected to generate cash proceeds of more than $19 billion for Changhe.
Frank Sixt, joint managing director of Changhe, said: "This transaction is a quick and prudent outcome, following the selection of numerous bids and expressions of interest, and is in the best interests of shareholders."
Frank Sixt also stressed that the deal was commercial and had nothing to do with recent political news about Panama's ports.
Larry Fink, Chairman and CEO of BlackRock, said: "This agreement is a strong demonstration of the strength of BlackRock and GIP's combined platform and our ability to offer differentiated investments to our clients. These world-class ports are driving global economic growth and we are excited to be part of this investment."
Diego Aponte, Chairman of TiL and President of MSC, said: "We have a long history of cooperation with Hutchison Ports. If this deal is completed, we look forward to having them join our family." "We are very focused on the port industry and the acquisition of Hutchison Ports is a very viable investment commercially."
Bayo Ogunlesi, Chairman and CEO of GIP, stressed: "With GIP's extensive experience in port ownership and operation, we will work together with our partners to focus on the development of these ports."
