According to people familiar with the matter, Chinese state-owned conglomerates China Merchants Group and China Cosco Shipping Corp. are among the firms that have expressed interest in PSA International Pte's minority stake in the ports business of Hong Kong's CK Hutchison Holdings Ltd.
The people said PSA is seeking $4 billion for its 20% stake in CK Hutchison's ports assets, but they don't want to be identified because the matter is private. The people said that PSA, which is owned by Singaporean state investment firm Temasek Holdings Pte, is working with an adviser as it receives preliminary interest in the stake.
The sale process has just kicked off and PSA is holding early talks with potential bidders including China Merchants, Cosco and other firms in the sector, the people said.
The firms could decide against making offers if the discussions are preliminary. Representatives for China Merchants, Cosco, PSA and CK Hutchison didn't respond immediately to requests for comment.
Billionaire Li Ka-shing s conglomerate CK Hutchison counts businesses spanning ports, retail, infrastructure and telecommunications. It is one of the world's biggest container terminal operators and port services providers, with holdings in around 51 ports in 25 countries, according to its website.
PSA International, based in Singapore, operates more than 60 deep-sea, rail and inland terminals in 42 countries, according to its website. In 2006, it bought the stake in CK Hutchison's ports business for $4.4 billion.
With help from Shirley Zhao, Anurag Kotoky, Kathy Chen and Dong Cao.
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