Temasek’s PSA halts sale of $4 billion in Hutchison Ports stake, sources say Ship’s crew

(Bloomberg) –

According to people familiar with the matter, PSA International Pte has plans to sell its minority stake in Hong Kong-based CK Hutchison Holdings Ltd’s port business. on hold in the face of economic headwinds.

Temasek Holdings Pte-owned PSA put the stake sale on hold after potential valuations came in lower than expected as shipping activity slowed globally, the people said. According to Bloomberg News, PSA had applied for about $4 billion for its 20 percent stake in CK Hutchison’s port facilities.

The company would reconsider selling shares once trade in the ports picks up again, the people said, asking not to be named because it was a private matter. A PSA representative declined to comment.

The Chinese state-owned companies China Merchants Group and China Cosco Shipping Corp. were among the companies that had expressed an interest in acquiring the stake, people familiar with the matter said.

According to Bloomberg Intelligence analyst Stephane Kovatchev, lower disposable incomes, new ship deliveries and headwinds from the recession could lead to a further weakening of container shipping industry fundamentals in the second half of 2023. Freight rates — a key driver of industry profitability — have fallen about 85% over the past 22 months, he wrote in a statement Tuesday.

Billionaire Li Ka-shing’s CK Hutchison conglomerate includes companies in ports, retail, infrastructure and telecommunications. Hutchison Port Holdings Ltd. is one of the world’s largest port service providers with a network spanning Asia, the Middle East, Africa, Europe, Americas and Australasia, as the website reveals.

Based in Singapore, PSA operates more than 60 deepwater, rail and inland terminals in 42 countries, according to its website. In 2006, the company bought CK Hutchison’s interest in the Ports business for $4.4 billion.

© 2023 Bloomberg LP

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