Exclusive | Hutchison, government in talks to see if there’s any way out as Panama deal deadline nears
Sources say Hong Kong government approached Hutchison immediately after learning on March 4 about the surprise deal to sell its port operations
The Hong Kong government approached tycoon Li Ka-shing’s CK Hutchison Holdings to better understand the deal to sell its two Panama ports to a consortium led by US investment firm BlackRock and was trying to see whether there was “a reasonable way out” ahead of an April 2 deadline, the Post has learned.
A source on Thursday also dismissed reports suggesting that Beijing had ordered state-owned firms not to do business with companies linked to Li’s family as the row escalated, saying it was “not true”.
Sources said the government had approached Hutchison immediately after learning from its surprise announcement on March 4 that it was selling all its overseas port operations to a group led by the US firm.
The Hong Kong-based firm revealed that it was offloading its interest in 199 berths in 43 ports spread over 23 countries, including operations at each end of the Panama Canal, in a deal worth US$23 billion, with Hutchison set to receive US$19 billion in cash.
“Both sides have since been in contact, trying to look for a reasonable way out,” a source familiar with the case said.
Other sources said the options were limited as pulling out of the sale was likely to be costly and carried serious political implications while pressing ahead with it would exact a toll on both the company and the country.