BlackRock-TiL consortium buys 90% stake in Panama Ports Company
"The transaction is commercial in nature & unrelated to recent political news reports concerning the Panama Ports."
CK Hutchison, through Hutchison Port Holdings (HPH), reached an in-principle agreement whereby HPH’s 90 percent interests in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama, will be sold to the BlackRock-Terminal Investment (TiL) consortium.
The deal also includes CK Hutchison’s 80 percent effective and controlling interest in subsidiary and associated companies owning, operating and developing a total of 43 ports comprising 199 berths in 23 countries, says an official release.
"The HPH Ports sale perimeter does not include any interest in the HPH Trust, which operates ports in Hong Kong, Shenzhen and South China, or any other ports in China," the release added.
The aggregate enterprise value for 100 percent of HPH ports sale perimeter, including the Panama ports, has been agreed at $22.8 billion.
Larry Fink, Chairman and Chief Executive Officer, BlackRock says: "This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth. Through our deep connectivity to organisations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment."
Diego Aponte, Chairman, Terminal Investment (TiL) and President, MSC Group adds: "Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship. Furthermore, we are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding and terrific relationship. We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our larger family. We are very focused on this industry, and we know that the investment in Hutchison Ports will be a very viable investment commercially."
Frank Sixt, Co-Managing Director, CK Hutchison says: "This transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received. As a result, the transaction valuation agreed in principle is compelling, and the transaction is clearly in the best interest of our shareholders. After adjusting for minority interests and repayment of certain shareholder loans due from HPH to CK Hutchison, the transaction would be expected to deliver cash proceeds in excess of $19 billion to our group. I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports. It must be noted that, however, the transaction does remain subject to confirmatory due diligence, settlement of definitive documentations, and normal and usual completion procedures, adjustments and conditions as well as compliance by HPH with the rights of minority shareholders under existing shareholders agreements relating to the sold HPH interests."
