HONG KONG, March 19 (Reuters) – CK Hutchison announced on Thursday that it is still in discussions with a group seeking to buy the majority of its ports business. This deal is complicated by a legal dispute with the Panamanian government, even as the company reported a 7% increase in its underlying profit for 2025.
The company, which is owned by Hong Kong billionaire Li Ka-shing, has been in a diplomatic tug-of-war since former U.S. President Donald Trump voiced concerns about Chinese ownership of ports near the strategically important Panama Canal.
Frank Sixt, co-managing director and finance director of CK Hutchison, stated during a media conference, “We are still in talks with the original consortium members and also with a major financial and strategic investor from China.”
PORTS SALE FACING PANAMA DISPUTE
Last year, CK Hutchison had agreed to sell a number of ports worldwide, including two close to the Panama Canal, for $23 billion to a consortium led by U.S. investment firm BlackRock and Mediterranean Shipping Company.
Despite criticism from Beijing, the company indicated it was in talks for the consortium to bring in a "major strategic investor," identified by sources as China's COSCO.
However, the situation became more complex this year after the Panamanian government aimed to reverse a concession agreement that transferred control of the two terminals to CK Hutchison's Panama Ports Company, which is now contesting this move.
The company explained in a filing on Thursday that “Geopolitical pressure has resulted in a significant legal conflict with the Panamanian State,” making discussions about the ports sale more difficult.
CK Hutchison reported an underlying profit of HK$22.3 billion ($2.85 billion) for 2025, which is slightly below analysts' expectations and an increase from HK$20.8 billion the previous year.
However, taking into account a one-time non-cash accounting loss related to the merger of its U.K. telecom operations, net profit decreased by 31% compared to last year, totaling HK$11.84 billion.
A significant portion of CK Hutchison's earnings comes from infrastructure and telecommunications sectors.
Regarding the ongoing conflict in the Middle East, the company suggested that its oil business could perform well, and there might be increased demand for port storage.
With a boost in free cash last year and a recent $14 billion sale of a U.K. power grid by its infrastructure division, Chairman Victor Li mentioned that the group would seek projects that can enhance earnings and provide stable long-term cash flow in countries that respect foreign investments.
Additionally, CK Hutchison clarified that there have been no decisions regarding any transactions related to its telecom business or the retail unit A.S. Watson Group.
Previous reports from Reuters hinted that both businesses were contemplating listings in London and Hong Kong as early as the second and third quarters of 2026, respectively.