CKH Holdings (00001): Panama's Supreme Court rules concession agreement unconstitutional, company has initiated arbitration

CKH Holdings (00001) announced that the Board of Directors has been informed that the Ministry of Justice of the Republic of Panama issued a statement on January 29, 2026, stating that the Supreme Court of Panama has decided to declare the Law No. 5 of January 16, 1997, and its amendments and extensions unconstitutional. Law No. 5 of January 16, 1997, pertains to relevant laws in Panama and approves a concession contract for the operation of the Balboa and Cristobal ports in Panama by Panama Ports Company (PPC), a subsidiary in which the company indirectly holds a 90% interest, for almost 30 years. According to PPC, the decision of the Supreme Court of Panama may take effect in early February 2026. PPC has received advice indicating that the decision announced by the Supreme Court of Panama, as well as the corresponding actions taken by the Panamanian government regarding PPC's terminal operations at the two ports, are not consistent with the legal framework and the law approving the concession contract. On February 3, 2026, PPC initiated and will actively and decisively pursue arbitration against the Republic of Panama in accordance with the applicable concession contract and the rules of the International Chamber of Commerce. The Board strongly opposes Panama's ruling and corresponding actions. The group will continue to seek advice from its legal counsel and reserves all rights, including resorting to further domestic and international legal proceedings on the matter.