CK Hutchison executive defends delay in Panama ports deal
The firm in March proposed the sale of its global ports business comprising 43 ports in 23 countries -- including operations in the vital Central American waterway -- to a US-led consortium for $19 billion in cash.
The deal was seen as a political win for US President Donald Trump, who had vowed to "take back" the Panama Canal from alleged Chinese control.
However, Beijing has since stepped up regulatory scrutiny, and CK Hutchison said last month it was looking to invite a Chinese "major strategic investor" to join discussions.
"(The deal) is taking much longer than we had expected when we announced in March, but frankly that's not particularly troublesome," executive Frank Sixt said at a post-earnings analyst presentation.
The firm was "into a new stage of our deal", said Sixt, who is the group's co-managing and finance director.
"There is a reasonable chance that those discussions will lead to a deal that is good for all of the parties... (and) that will be capable of being approved by all the relevant authorities," he said.
The Chinese investor remained unnamed on Thursday.
China's biggest shipping company Cosco was set to join the consortium and was requesting veto rights or equivalent powers, Bloomberg News previously reported.
- Closing not imminent -
Panama's comptroller general has asked the country's Supreme Court to review the arrangements allowing CK Hutchison's local subsidiary to run the ports -- potentially a snag to any fresh agreement.
"With a deal of this size and complexity, closing... would not in any case occur this year, even if binding arrangements are agreed this year," Sixt said.
CK Hutchison initially planned to pass control of its two Panama ports to BlackRock's Global Infrastructure Partners unit, while the remaining ports will go to Italian billionaire Gianluigi Aponte's Terminal Investment Limited.
The Hong Kong firm's earnings report on Thursday did not mention the Panama ports deal.
Revenue of its port division rose nine percent year-on-year to HK$23.6 billion ($3 billion) in the first six months of 2025.
Over the same period the company recorded net profit of $109 million, down 92 percent year-on-year.
CK Hutchison attributed the decline to a one-time non-cash loss from the merger of its telecommunications business in Britain with Vodafone UK.
The division expects to "deliver good earnings growth for the full year" despite volatile global trade and consumer demands in the second half, the firm said.
The conglomerate's stocks in Hong Kong spiked after the March announcement of the deal but erased all its gains in the following month.
The share price has since recovered and closed at $6.6 on Thursday, up nearly 40 percent from its April low.
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