CK Hutchison said on Thursday it remained in talks with a consortium to sell the majority of its ports business, a deal that has been overshadowed by a legal fight with the Panamanian authorities, as it posted a 7% rise in 2025 underlying profit.
The conglomerate, owned by Hong Kong’s richest man Li Ka-shing, has been caught up in a diplomatic to-and-fro since U.S. President Donald Trump objected to Chinese ownership of ports along the globally strategic Panama Canal.
“It remains the case that we are in discussions with the original consortium members …as well as with… a major financial and strategic investor from China,” Frank Sixt, group co-managing director and finance director, told a media conference.
PORTS SALE CHALLENGED BY PANAMA DISPUTE
Last year, the Hong Kong ports-to-telecoms conglomerate agreed to a $23 billion sale of dozens of ports worldwide, including two near the Panama Canal, to a consortium led by U.S. asset manager BlackRock, and Mediterranean Shipping Company.
Amid Beijing’s criticism, it later said there were talks for the consortium to include a “major strategic investor”, which sources identified as China’s COSCO.
However, the deal was further complicated this year after Panama’s government moved to unwind a concession agreement that gave control of the two terminals to CK Hutchison unit Panama Ports Company, which has since challenged the action.
“Geopolitical pressure has led to a meaningful legal conflict with the Panamanian State,” complicating discussions about the ports sale, the company said in a filing on Thursday.
CK Hutchison reported 2025 underlying profit of HK$22.3 billion ($2.85 billion) on a post-IFRS 16 basis. That compared with an HK$22.9 billion LSEG SmartEstimate and the HK$20.8 billion booked a year earlier.
However, including a one-time non-cash accounting loss from the merger of its U.K. telecom business, net profit fell 31% from a year earlier to HK$11.84 billion.
CK Hutchison derives a significant portion of its earnings from infrastructure and telecommunications.
Commenting on the impact from the ongoing conflict in the Middle East, the company said its oil business may become a “bright spot” and the demand for port storage may rise.
With an increase of free cash last year and a recent $14 billion sale of a U.K. power grid by its infrastructure unit, Chairman Victor Li said the group will look for projects that will contribute to earnings and offer stable long-term cash flow in countries that respect foreign investments.
Separately, CK Hutchison said it has not made any decision related to any transactions of its telecoms business and retail unit A.S. Watson Group.
Reuters previously reported the two businesses were considering listings in London and Hong Kong as early as the second and third quarter of 2026 respectively.
Source: Reuters.com