Home THE DAILY EDGE Business Hutchison to sell Hong Kong, China ports in Singapore
Hutchison to sell Hong Kong, China ports in Singapore

Tags: Hitachi Asia | Hutchison Port Holdings Trust | Hutchison Whampoa

Written by Bloomberg   
Tuesday, 18 January 2011 10:31
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Hutchison Whampoa, controlled by billionaire Li Ka-Shing, plans to list Hong Kong and Southern Chinese ports in a Singapore trust to raise funds for expansion plans.

The company will retain a stake of about 25% in Hutchison Port Holdings Trust, which will hold the group’s deepwater container port operations in Hong Kong and Guangdong province, along with associated businesses and some Chinese river ports, Hutchison said in a Hong Kong stock exchange statement today. It didn’t say how much the listing may raise.

Hutchison, parent of the world’s largest container-terminal operator, will use the proceeds from the sale to help pay for expansion plans in ports and other businesses, it said. The separate company will also be able to more easily raise funds from lenders, according to the statement.

DBS Bank, Deutsche Bank AG and Goldman Sachs Group will manage the listing, the statement said.

Hutchison is listing the new vehicle in Singapore because trusts can’t be traded on the Hong Kong exchange, it said. Hong Kong-based Hutchison may eventually offer units of the trust in its home city if regulations are introduced, it said.

The company’s terminal unit, Hutchison Port Holdings, has interests in 308 berths in 51 ports across 25 countries, according to the statement.
 

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Last Updated on Tuesday, 18 January 2011 10:33