CK Hutchison vows to pursue ‘all legal remedies’ over seized Panama ports
Group says diversified network could benefit from higher storage revenue as inventory demand rises amid Strait of Hormuz crisis
Hong Kong conglomerate CK Hutchison has said it will pursue “all available legal remedies” through both national and international proceedings to resolve a dispute over its two Panama Canal ports seized by authorities in February.
Amid the widening conflict in the Middle East which could further complicate its multibillion-dollar global ports sale, the company downplayed the possible impact of a Strait of Hormuz blockade on its business, saying its diversified network could even benefit from higher storage revenue, as shipping diversions boosted inventory demand.
At a results briefing on Thursday, CK Hutchison’s management was asked to provide an update on the proposed sale of more than 40 ports worldwide to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).
Group co-managing director Frank John Sixt said both the conglomerate and its subsidiary Panama Ports Company (PPC) continued to “work vigorously” with their legal advisers and would “provide updates when that is appropriate”.
“We are pursuing all available legal remedies through both national and international proceedings,” he said. “We are in discussions with the original consortium members as well as a significant financial investor and a major strategic investor from China.”
The group reaffirmed its commitment to resolving the dispute in a way that was fair and protected the interests of shareholders.