The BlackRock and Terminal Investment Limited (TiL) Consortium has reached an agreement worth $22.8 billion to acquire the international port and terminal operations of CK Hutchison.
More specifically, the agreement will see the consortium acquire 90 per cent of Panama Ports Company (PPC), which operates the ports of Balboa and Cristobal in Panama, and 80 per cent of CK Hutchison’s controlling interest in 43 ports across 23 countries, including management resources, terminal systems, and related assets.
The PPC Transaction will proceed separately on confirmation by the Government of Panama of the proposed terms of the purchase and sale.
Acquisition of the HPH Ports Sale Perimeter will proceed on an expedited basis subject to the BlackRock-TiL Consortium conducting normal and usual confirmatory due diligence, settlement of definitive documentation, and receipt of any necessary regulatory approvals, amongst others.
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The aggregate Enterprise Value for 100 per cent of HPH Ports Sale Perimeter including the Panama Ports has been agreed at $22.8 billion. The allocation of transaction proceeds between the PPC Transaction and the HPH Transaction has also been agreed in principle.
Fundamental and Essential Terms of the PPC Transaction and the HPH Transaction have also been agreed in principle, subject to definitive documentation.
The PPC Transaction definitive documentation is expected to be signed on or before 2 April 2025.
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CK Hutchison and HPH have entered into exclusive negotiation and non-disclosure arrangements with the BlackRock-TiL Consortium which will be given full access to information and documentation for purposes of conducting confirmatory due diligence.
