CKH Holdings saw its stock surge 5.1% intraday on Thursday, extending the previous session's strong 21.9% rally. The Hong Kong conglomerate's shares were boosted by the announced sale of its majority stake in a key Panama Canal ports operator to a BlackRock-backed investor group.
The divestment of CKH Holdings' Panama Canal assets removes an overhang on the stock amid rising U.S. political pressure to take control of such strategic assets from Chinese firms. The deal, praised by U.S. President Donald Trump, allows CKH Holdings to monetize these non-core holdings while avoiding potential regulatory hurdles.
Investors cheered the $22.8 billion transaction as it provides CKH Holdings with cash proceeds to strengthen its financial position and future growth prospects. The sale of the Panama Canal ports business aligns with the company's efforts to streamline operations and divest non-core assets.