Li Ka-shing ponders partial sale of port assets in Hutchison Whampoa
Li has been buying up assets from Canada to Europe, stoking talk he is shifting or transferring assets out of Hong Kong and mainland China. The billionaire known as “superman” in the city has denied he is leaving
Billionaire Li Ka-shing is mulling a partial disposal of the port assets held by Hutchison Whampoa Limited to a consortium of state-owned mainland Chinese firms while ratcheting up his effort to snap up assets in Europe in an increasingly hectic round of corporate restructuring.
Hutchison Whampoa and four mainland companies have been in talks since mid-last year over a 40 per cent stake in Hutchison Port Holdings (HPH) valued at HK$150-HK$160 billion, according to a person with direct knowledge of the matter.
At the other end of table from Li is the quartet of China Merchants Holdings (International), Cosco Pacific, China Shipping Terminal Development and State Development & Investment Corporation.
The negotiations have quieted down recently after Li revealed the restructuring of Cheung Kong Holdings and Hutchison Whampoa last month in a move which led to his conglomerate registering in the Cayman Islands, possibly stoking renewed talk he is divesting out of Hong Kong and China.
“There is nothing at this moment that we should report to the market. If and when there is any transaction which requires an announcement, according to the Hong Kong listing rules, we will duly comply with the relevant rules and regulations in reporting these matters,” China Merchants said in a statement.
The possible deal with the mainland state-owned firms also hit a hitch as the buyers found Li’s price “excessively overvalued”, the person added.
“It is like a replay of the ParknShop (deal). The buyers would only end up massively overpaying for assets with no essential upside, and no managerial control,” the person said.