PSA seeking $5.4 billion for CK Hutchison Ports stake, attracting China giants: Sources
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PSA is holding early talks with potential bidders including China Merchants Group and China Cosco Shipping, sources said.
PHOTO: BLOOMBERG
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HONG KONG – Chinese state-owned conglomerates China Merchants Group and China Cosco Shipping are among the firms expressing interest in PSA International’s minority stake in the ports business of Hong Kong’s CK Hutchison Holdings, according to people familiar with the matter.
PSA is seeking about US$4 billion (S$5.4 billion) for its 20 per cent share of CK Hutchison’s ports assets, the people said. PSA, owned by state investment company Temasek, is working with an adviser as it fields preliminary interest in the stake, the people added.
The sale process has just kicked off and PSA is holding early talks with potential bidders including China Merchants, Cosco and other firms in the sector, the people said.
Discussions are preliminary and the firms could decide against making offers, they said.
A representative for PSA declined to comment, while spokesmen for China Merchants, Cosco and CK Hutchison did not immediately respond to requests for comment.
CK Hutchison, billionaire Li Ka Shing’s conglomerate, counts businesses that span ports, retail, infrastructure and telecommunications.
It is one of the world’s biggest container terminal operators and port services providers, with holdings in about 51 ports in 25 countries, its website shows.
PSA International operates more than 60 deep-sea, rail and inland terminals across 42 countries, according to its website. It bought the stake in CK Hutchison’s ports business in 2006 for US$4.4 billion. BLOOMBERG
