AsianFin -- CK Hutchison Group, owned by Li Ka-Shing, announced on Monday in a Hong Kong Stock Exchange statement that its board had taken note of recent media reports concerning the potential separation of its global telecommunications assets and business.
However, the board clarified that as of the date of the announcement, no decisions had been made regarding any transactions related to its global telecommunications operations. The company remains uncertain whether any such transactions will proceed.
Meanwhile, the Chinese government has stepped in regarding the Group's proposed sale of 43 overseas port assets, including a port in Panama, to U.S. investment firm BlackRock. On March 28, the State Administration for Market Regulation (SAMR) officially responded to media inquiries about the deal, saying that it would conduct an antitrust review in accordance with the law to safeguard market fairness and public interest. This move signals the Chinese government's increasing regulatory oversight over multinational transactions involving national security and strategic resources.
As a result of this scrutiny, the deal has been delayed. Originally slated for agreement by April 2, the final transaction will now be postponed. Sources close to Longfor’s senior management revealed that the complexity of the transaction and various concerns from different parties would prevent the signing of the final agreement next week. Since the Hong Kong government became aware of the deal on March 4, it has been in ongoing discussions with Longfor Group to find a legal and regulatory resolution.
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