Singapore's state-owned PSA said on Tuesday it would buy 57 percent of Hong Kong's Asia Container Terminals, a deal reportedly valued at $333 million that gives Singapore a toehold in the world's busiest container port. PSA International Pte. Ltd said it would buy the controlling stake from Sun Hung Kai Properties Ltd, making the Singapore government the dominant shareholder in one of five operators running Hong Kong's main Kwai Chung container hub.
Both companies declined to put a value on the deal. But the South China Morning Post newspaper reported that Sun Hung Kai, a Hong Kong property giant, had sold the stake for HK$2.6 billion (US $333 million).
She did not give the sale price but said it was "a very satisfactory return".
Sun Hung Kai could reap a profit of more than HK$1 billion from the transaction, representing a gain of around HK$0.50 per share, said Adrian Ngan, an analyst at BNP Peregrine.
Analysts said they expect Sun Hung Kai will continue to invest in port and infrastructure businesses, although it will not hold any container terminals after the deal.
Shares in Sun Hung Kai eased 0.9 percent to close on Tuesday at HK$77.25, after rising nearly 10 percent in the past month.
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