Fourth Beijing warning for Li Ka-shing’s Hutchison over Panama ports deal

Beijing’s offices overseeing Hong Kong affairs have signalled their anger at tycoon Li Ka-shing’s CK Hutchison Holdings for the fourth time by reposting a news article which accuses the company of not maximising its profits in the “unusual deal” to sell its Panama ports to a consortium led by US firm BlackRock.

The Hong Kong and Macau Affairs Office and the central government’s liaison office in the city on Thursday posted on their websites an article by pro-Beijing newspaper Ta Kung Pao, which quoted international business experts as saying the sale was “inconsistent with the business logic of seeking profit”.

“[The deal] not only undervalues the assets but has a very short decision-making process instead of adopting the ‘highest bidder wins’ approach,” it said.

“Western media have also pointed out that the American financial group got a good deal.”

The Hong Kong-based firm surprised markets earlier this month by announcing it was selling all its overseas port operations, including two facilities at either end of the Panama Canal, to a group led by investment firm BlackRock in a deal worth US$23 billion, with Hutchison set to receive US$19 billion in cash.

US President Donald Trump, who had been lobbying for the canal to be freed from what he saw as Chinese control, had hailed the deal, saying Washington was “reclaiming” the canal.