PSA considering disinvestment from Hutchison Ports

Singapore’s Port operator Temasek-owned PSA is mulling withdrawing its 20% stake in the ports business of Hong Kong’s CK Hutchison, Reuters has reported.
 

In a report based on the comments of two unnamed sources, Reuters maintains that PSA, the world’s second largest terminal operator, first gained a stake in the Hutchison terminal business for US$4.4bn in 2006.
 

The report goes on to suggest that port operators, mainly from China, shipping lines and cash-rich global infrastructure funds are being targeted to take up the stake.
 

The background to the mooted PSA move appears to be a slowdown in global shipping growth. The latest UNCTAD forecast for global maritime growth for 2023-2027 has been estimated at an annual average of 2.1%, falling from the previous three-decade average of 3.3% with slower economic growth and the ongoing Russia-Ukraine conflict casting a shadow over prospects.
 

Securing regulatory approval for the sale along with the acceptability to all parties are among the considerations, as well as the stake’s valuation.

Source: Hong Kong Maritime Hub

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