HK Stock Movement | CKH HOLDINGS (00001) Falls Over 3% Again; Panama's Unconstitutional Ruling on Port Contracts Poses Risk to Sale Negotiations, Says UBS

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CKH HOLDINGS (00001) fell more than 3% again. As of the time of writing, the stock was down 3.56% to HK$61, with a turnover of HK$716 million. The decline follows a ruling by Panama's Supreme Court stating that the contracts for two Panamanian ports operated by a company under CK Hutchison Holdings, controlled by the Li Ka-shing family, are unconstitutional, and subsequently cancelling those contracts. In response, a spokesperson from China's Ministry of Foreign Affairs commented on the afternoon of January 30th, stating that the relevant company has immediately issued a declaration indicating that the ruling contravenes the laws under which Panama originally approved the relevant concessions, and that the company reserves all rights, including pursuing legal proceedings. UBS noted that the two Panamanian ports contribute only about 5% to the EBITDA of the group's Hutchison Port Holdings Trust and approximately 0.8% to CKH HOLDINGS' overall EBITDA. The primary downside risk lies more with the ongoing negotiations for the sale of CKH HOLDINGS' port business, which includes the two relevant Panamanian ports. However, earlier reports also indicated that CKH HOLDINGS is considering handling the port transaction by splitting it into separate parts with different ownership structures.

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