(Hong Kong, 21 April 2006) Hutchison Whampoa Limited (HWL) announced today that it has signed a sale and purchase agreement to sell 20 per cent effective equity and loan interest in each of Hutchison Port Holdings Limited (HPH) and Hutchison Ports Investments S.a r.l (HPI) respectively to Singapore’s PSA International Pte Ltd (PSAI), for a total cash consideration of USD4,388 million (approximately HKD34,000 million).
The Company will realise a profit on disposal of approximately HKD24,380 million upon completion of the transaction, which both parties are endeavouring to close as soon as possible and no later than end of May 2006. The net proceeds from the transaction will be used for HWL’s general working purposes.
Commenting on the transaction, HWL Group Managing Director Mr Canning Fok said, “The transaction represents an excellent opportunity to crystallise value for the Company and its shareholders. The terms of this transaction reflect the quality and value of our privately held ports business, setting an attractive benchmark for the Group’s remaining interests in the business which we will continue to control and manage. We are pleased that PSAI has decided to take this 20 per cent holding, given PSAI’s long-term commitment to the ports industry.”
Hutchison is the world’s largest private port operator, operating 42 ports in 20 countries.