Conglomerate Hutchison Whampoa Ltd, looking to offset 3G telecoms start-up losses, will sell a stake in its flagship Hong Kong container port operations to Singapore's state-owned port operator for US $800 million, a Hong Kong newspaper reported on Thursday. The purchase would mark PSA's second acquisition of port assets in Hong Kong in four months as operators clamour for more access to China's booming export and import market.
PSA has agreed to buy 20 percent of Hongkong International Terminals (HIT), the jewel in Hutchison's global port crown, the South China Morning Post said.
"We have no comment on rumours," said a spokesman for Hutchison Port Holdings (HPH), the world's largest operator of container ports. PSA said it did not have immediate comment.
Shares in Hutchison, controlled by Hong Kong's richest tycoon, Li Ka-shing, have risen for five consecutive trading days and were up 0.72 percent on Thursday to HK$70.
After the deal, Hutchison will still hold a controlling 66.5 percent stake in HIT, which operates 12 berths at Hong Kong's main Kwai Chung container port, the newspaper said.
Hutchison, the world's largest container port operator, is likely in a win-win position given the high prices paid in recent port acquisitions in Hong Kong and China, analysts said.
"I think PSA wouldn't mind paying a premium for the asset," said Jim Wong, a port analyst at BNP Peregrine.
In February, PSA secured a psychologically important foothold in Hong Kong when it bought stakes in two Kwai Chung terminals from NWS Holdings for HK$3 billion (US $385 million).
Comments
Comments are closed.