Temasek's PSA explores multi-billion dollar exit from Hutchison Ports-sources | Inquirer Business

Temasek’s PSA explores multi-billion dollar exit from Hutchison Ports-sources

/ 03:36 PM December 09, 2022

SINGAPORE  -Port operator PSA International, fully owned by Singapore state investor Temasek Holdings, is considering selling its multi-billion dollar, 20-percent stake in the ports business of CK Hutchison Holdings, two sources familiar with the matter told Reuters.

PSA, the world’s second-biggest container terminal operator, whose global network encompasses 160 locations in 42 countries, had acquired the stake in the Hong Kong-based conglomerate’s ports business for $4.4 billion in 2006. PSA was not immediately able to provide comment to a Reuters query. Both Temasek and CK Hutchison, the conglomerate of retired billionaire Li Ka-shing, declined to comment.

ADVERTISEMENT

PSA is in the early stages of evaluating an exit from CK Hutchison’s ports business and some potential bidders have been tapped, said the sources, who did not want to be identified due to the sensitivity of the matter.

Reuters was not immediately able to ascertain the estimated valuation of PSA’s stake being offered for sale.

FEATURED STORIES

The sources said PSA’s move comes as it reviews its portfolio in the backdrop of muted global shipping activity.

One of the sources said he expects port operators, mainly from China, shipping liners and cash-rich global infrastructure funds to be among the potential bidders.

CK Hutchison’s ports division is one of the world’s largest port operators but its mainstay Hong Kong business has been facing tough competition from mainland Chinese ports in the last few years. Last month, U.N. agency UNCTAD forecast global maritime growth for 2023-2027 at an annual average of 2.1 percent, down from the previous three-decade average of 3.3 percent, with slow economic growth and the conflict in Ukraine hurting the outlook for trade.

Subscribe to our business newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: port operations, PSA International
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.