Chinese state-owned conglomerates, China Merchants Group and China Cosco Shipping Corp., have expressed interest in PSA International Pte’s minority stake in Hong Kong’s CK Hutchison Holdings Ltd.
PSA is seeking roughly $4 billion for its 20 per cent share of CK Hutchison’s ports assets.
PSA is working with an adviser as it fields preliminary interest in the stake, a Bloomberg source reported.
The sale process has just kicked off and PSA is holding early talks with potential bidders including China Merchants, Cosco, and other firms in the sector.
Discussions are preliminary and the firms could decide against making offers, according to Bloomberg’s source.
Representatives for China Merchants, Cosco, PSA, and CK Hutchison have not immediately responded to requests for comment.
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CK Hutchison counts businesses spanning ports, retail, infrastructure, and telecommunications, and it has holdings in roughly 51 ports in 25 countries.
On 10 March, PSA Mumbai announced a partnership with O2 Power Pte Ltd (O2 Power) for the development of a 6.25 Megawatt (MW) solar farm.