Hong Kong billionaire Li Ka-Shing is reconsidering the sale of CK Hutchison’s stake in Hutchison Port Holdings to Blackrock and MSC Group, according to media reports.
The $22.8bn stake sale, which was set to be signed today 2 April, has now been postponed although the deal has not been called off, said Reuters.
No timeline was given for when it might be completed.
Media reports speculated that the deal was likely delayed due to intense pressure from Beijing on Li to cancel it, as it was perceived to conflict with national interests.
Further criticism has been levelled at Li through a third editorial published in Beijing-backed newspaper Ta Kung Pao on 21 March, saying that the deal should be scrapped as it is a “perfect cooperation” with the US strategy to contain China.
The editorial, which has since been republished by the Hong Kong and Macau Affairs Office, also warned that businesses that disregard national interests will “destroy their own foundations”.
A few days earlier, Beijing had also told state-owned firms to hold off on any new tie-ups with businesses linked to Li Ka-shing and his family, according to media reports.
The directive was issued to state-owned enterprises, and regulators were heard to be reviewing the Li family’s business dealings in China and abroad to understand the breadth of its business.
The negativity surrounding the deal has negatively impacted CK Hutchison’s share price, which dropped 14%, falling from HKD 51.5 on 6 March when the deal was announced to HKD 44.3 by market close on 2 April.
CK Hutchison’s share price had previously surged by 33.4%, rising from HKD 38.65 on 6 March, as shareholders anticipated gains from the mega-deal. The company was set to receive $19bn, nearly matching its entire market capitalisation, according to Drewry analysts.
