Li Ka-shing's Hutchison to delay controversial US$23 billion global ports sale until 2026
US$23 billion deal to sell 43 overseas ports – including two at the Panama Canal – will not be completed this year, group co-managing director Frank Sixt said in a post-results briefing on Thursday.
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Sixt updated analysts about the progress of the proposed sale after the company posted a 92 per cent plunge in its interim profit, as various one-off costs amounting to HK$10.47 billion (US$1.3 billion) weighed on its performance, according to an exchange filing.
Closing a deal of this size and complexity would not have taken place this year even if binding new arrangements were agreed this year, Sixt said.
'It is taking much longer than we had expected when we announced it in March, but frankly that is not particularly troublesome,' he said. 'The ports group is having a very good year, generating stronger earnings and cash flow than we had expected.'
CK Hutchison Holdings' group co-managing director Dominic Lai (left), group managing director and finance director Frank Sixt (centre) and group CFO Kwan Cheung at the earnings briefing on Thursday. Photo: Handout
Sixt said there was 'a reasonable chance these discussions will lead to a deal that is good for all parties – ourselves included – and most importantly be approved by all relevant authorities'.
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