- CK Hutchison delays US$23B ports divestment to 2026, citing deal complexity.
- The net profit drops 92% due to UK telecom merger-related impairment.
- The underlying profit rises 11% as core operations remain solid.
CK Hutchison Holdings, the flagship conglomerate of Hong Kong tycoon Li Ka-shing, announced it will delay the planned sale of its global ports business—valued at US$23 billion—until 2026, citing the complexity of asset-level transactions across multiple jurisdictions, reports SCMP.
The delay, which had been widely anticipated in financial circles, pushes back one of the most significant divestment efforts in CK Hutchison’s recent history. The sale, which includes strategic assets such as port terminals near the Panama Canal, has attracted scrutiny from global regulators amid heightened geopolitical tensions.
Li Ka-shing’s $23B Ports Plan Runs Aground
The announcement came alongside CK Hutchison’s first-half earnings report, which revealed a 92% plunge in net profit, down to HK$852 million (US$109 million), primarily due to a one-off, non-cash impairment charge of HK$10.47 billion related to the merger of its UK telecom unit Three with Vodafone.
Despite the headline drop in profit, the group’s underlying earnings—excluding extraordinary items—rose 11% year-on-year to HK$11.36 billion, driven by solid performances in retail and infrastructure divisions. Group revenue climbed 3% to HK$240.66 billion.
Co-Managing Director Frank Sixt emphasized that despite the port sale delay, the division continues to deliver stronger-than-expected earnings and cash flow, mitigating risks associated with the postponement. He added that the group remains committed to unlocking value from its infrastructure and logistics assets, but only “at the right time and under the right conditions.”
Chairman Victor Li Tzar-kuoi also addressed macroeconomic headwinds, noting that while global trade uncertainty and interest rate volatility persist, the group’s diversified global footprint and favorable currency impacts have provided a cushion.
The group originally targeted closing the ports sale in 2025, but regulators and buyers have reportedly raised concerns over the strategic nature of some assets in light of U.S.-China tensions.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: SCMP
