Li Ka-shing’s Hutchison to delay controversial US$23 billion global ports sale until 2026
The deal is taking much longer than expected because of the size and complexity, co-managing director Frank Sixt says
Sixt updated analysts about the progress of the proposed sale after the company posted a 92 per cent plunge in its interim profit, as various one-off costs amounting to HK$10.47 billion (US$1.3 billion) weighed on its performance, according to an exchange filing.
Closing a deal of this size and complexity would not have taken place this year even if binding new arrangements were agreed this year, Sixt said.
“It is taking much longer than we had expected when we announced it in March, but frankly that is not particularly troublesome,” he said. “The ports group is having a very good year, generating stronger earnings and cash flow than we had expected.”
Sixt said there was “a reasonable chance these discussions will lead to a deal that is good for all parties – ourselves included – and most importantly be approved by all relevant authorities”.