HONG KONG : Hutchison Whampoa Ltd is selling a stake in a Hong Kong container terminal to Singapore's PSA Corp, reports the South China Morning Post, quoting a source with knowledge of the deal.
PSA will pay almost US$800 million for 20 percent of Hongkong International Terminals, or HIT, leaving Hutchison with a 66.5 percent stake.
"The original proposal was for an equity swap between PSA and HIT, but Canning wanted cash," said an executive with knowledge of the deal, referring to Hutchison group Managing Director Canning Fok Kin-ning.
"They had targeted a completion date of July 1, but both sides are very eager to get it done."
The purchase would mark PSA's second acquisition of port assets in Hong Kong in four months.
The report also said that the deal is seen as a sign that Hong Kong has entered its sunset years as leading global container hub.
Hong Kong was the world's busiest container port last year but was surpassed by Singapore in the first quarter of 2005. - CNA /ch
Rivals turn into partner if it happens