CK Hutchison sees 'reasonable chance' to pull off port sale deal

CK Hutchison‘s (0001) ports sale deal is into a new stage, and there is a “reasonable chance” to pull off a deal that is “good for all parties,” said co-managing director Frank Sixt.

The Hong Kong conglomerate has invited a "major Chinese strategic investor" into the discussions, which could lead to a deal that will be capable of being approved by all relevant authorities, Sixt said at an analyst conference following the results. 

While the US$22.8 billion (HK$177.8 billion) ports business sale is taking much longer than anticipated, it is “not particularly troublesome” for CKH as the segment is having a “very good year, generating stronger earnings and cash flow” than he had expected, Sixt said.

A transaction of this scale has implications for many states and regulators, which includes China and the US - but also the UK, the EU, and several other countries, he said. 

Reiterating CKH will not proceed with any deal without the approval of all relevant authorities, Sixt expects that closing a deal of this size and complexity would not occur until next year, even if binding new arrangements are signed this year.