HONG KONG : Hutchison Whampoa Ltd is selling a stake in a Hong
Kong container terminal to Singapore's PSA Corp, reports the South
China Morning Post, quoting a source with knowledge of the
deal.
PSA will pay almost US$800 million for 20 percent of Hongkong
International Terminals, or HIT, leaving Hutchison with a 66.5
percent stake.
"The original proposal was for an equity swap between PSA and HIT,
but Canning wanted cash," said an executive with knowledge of the
deal, referring to Hutchison group Managing Director Canning Fok
Kin-ning.
"They had targeted a completion date of July 1, but both sides are
very eager to get it done."
The purchase would mark PSA's second acquisition of port assets in
Hong Kong in four months.
The report also said that the deal is seen as a sign that Hong Kong
has entered its sunset years as leading global container hub.
Hong Kong was the world's busiest container port last year but was
surpassed by Singapore in the first quarter of 2005. - CNA /ch