CK Hutchison's Ports Sale: Strategic Shifts amid Rising Profits

CK Hutchison reports an 11% rise in underlying profit, drawing attention to its $22.8 billion ports sale. The proposed deal with BlackRock and MSC faces scrutiny from China and awaits regulatory approval. Talks with potential Chinese investor COSCO could mitigate security concerns and secure the deal.

CK Hutchison reported an 11% increase in first-half underlying profit on Thursday, as anticipation builds over its $22.8 billion ports sale to a consortium. Despite strong profit figures, including significant input from its ports-to-telecoms operations, the conglomerate's net profit plunged 92% due to one-time non-cash accounting loss.

Ever since announcing the sale of 43 ports across 23 countries, including spots along the Panama Canal, CK Hutchison has faced significant backlash from China. The ongoing dialogues with BlackRock and MSC have recently seen a potential shift, as talks surfaced about adding a major Chinese strategic investor.

Industry sources mention COSCO, a leading marine transportation firm, as the possible Chinese investor, which could ease security concerns from China. Meanwhile, CK Hutchison's stocks saw a minor dip, aligning with the trend on the Hang Seng Index, even as the firm maintains a strong balance sheet and receives an 'overweight' rating from Morgan Stanley.

(With inputs from agencies.)