Two sources familiar with the matter told the matter that PSA International, fully owned by Singapore state investor Temasek Holdings, is considering selling its multi-billion dollar, 20% stake in the ports business of CK Hutchison HoldingsHutchison Holdings.
The stake in the Hong Kong-based conglomerate's ports business was acquired in 2006 by PSA, the world's second biggest container terminal operator, with a global network of 160 locations in 42 countries. PSA was not immediately able to provide a response to a Reuters query. Both Temasek and CK Hutchison, the conglomerate of retired billionaire Li Ka-shing, didn't want to say anything.
The sources who did not want to be identified said that the PSA is considering an exit from CK Hutchison'sHutchison's ports business and some potential bidders have been tapped in the early stages of the process.
The estimated valuation of PSA's stake was not immediately known by Reuters.
The sources said PSA's move came as it reviewed its portfolio as a result of muted global shipping activity.
One of the sources said that he expects port operators to be among the potential bidders, mainly from China, shipping liners and cash-rich global infrastructure funds.
CK Hutchison'sHutchison's ports division is one of the world's largest port operators but its mainstay Hong Kong business has been facing tough competition from mainland Chinese ports in the last few years. Last month, U.N. agency UNCTAD forecast global maritime growth for 2023 -- 2027 at an annual average of 2.1%, down from the previous three-decade average of 3.3%, with slow economic growth and the conflict in Ukraine hurting the outlook for trade.