CKH Holdings (00001) intends to sell its port assets to the BlackRock TiL consortium, with a deal valued at potentially over $19 billion.

CKH HOLDINGS (00001) announced that on March 4, 2025, the company reached a preliminary agreement with BlackRock, Inc., Global Infrastructure Partners, and Terminal Investment Limited (referred to as the "BlackRock-TiL Consortium") on the basic terms of the transaction. The transaction will involve the group selling all its shares in Hutchison Port Holdings S.a r.l. (HPHS) and Hutchison Port Group Holdings Limited (HPGHL). It is reported that HPHS and HPGHL collectively hold 80% of the group's actual interests in the Hutchison Port Group, which in turn holds equity in subsidiary and affiliated companies operating and developing a total of 199 berths in 43 ports in 23 countries, along with all the management resources, operational business, container terminal systems, information technology, and other systems of the Hutchison Ports, as well as other assets related to the control and operation of ports ("Assets for Sale"). The Assets for Sale do not include any equity interests in the Hutchison Ports Trust, namely the trust operating ports in Hong Kong, Shenzhen, and South China, or any ports in mainland China. The company and the BlackRock-TiL Consortium have agreed to negotiate and finalize the final documents based on the basic terms in good faith, with the company agreeing to exclusively negotiate with the BlackRock-TiL Consortium for a period of 145 days. In addition, a preliminary agreement has been reached with the BlackRock-TiL Consortium for the acquisition of 90% of Hutchison Port's equity in Panama Ports Company, S.A. (PPC), which owns and operates ports in Balboa and Cristobal, Panama. According to the preliminary basic terms, based on the enterprise value of the Assets for Sale at 227.65 billion USD and assuming net debt of 5 billion USD, the equity value of the Assets for Sale will be 177.65 billion USD (100% calculation) and the equity value of the shares sold (equivalent to 80%) will be 142.12 billion USD. The purchase price will be adjusted based on the actual net debt at completion and will exclude 80% of the cost of the PPC transaction. After adjusting for minority shareholders' equity and certain shareholder loans owed to the company by the Hutchison Port Group, it is expected that the transaction will bring the group more than 19 billion USD in cash proceeds. If significant issues are discovered by the buyer during the due diligence process, both parties will negotiate in good faith to make reasonable adjustments to the transaction, including, if applicable, the purchase price.