CK Hutchison Holdings' US$23 billion plan to sell its worldwide ports to BlackRock just needs the support from 15 per cent of the minority shareholders to carry the day, and the flagship company of tycoon Li Ka-shing is dangling a bonus estimated at HK$25 per share to sway their vote.

The threshold is low, because Li and his elder son Victor control 30.43 per cent of Hutchison - almost 24 per cent of that in a trust under the name of the nonagenarian tycoon and the balance in a string of nominee companies - while BlackRock held 4.84 per cent as of a March 12 filing.

The deal, called a "very substantial disposal," needs the support of 50 per cent of eligible shareholdings in a specially arranged shareholder meeting, according to Chapter 14 of Hong Kong's listing rules.

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"Li's family, as the largest shareholder, can vote in the shareholders' meeting" because the sale is not a connected transaction between related parties under the listing rules of the Hong Kong stock exchange, where Hutchison's shares are listed, said Kenny Tang Sing-Hing, the chairman of the Hong Kong Institute of Financial Analysts and Pro­fessional Commentators.

Hong Kong tycoon Li Ka-shing (right) and his elder son Victor Li Tzar-kuoi (left) during the press conference to announce his retirement on March 16, 2018. Photo: AP. alt=Hong Kong tycoon Li Ka-shing (right) and his elder son Victor Li Tzar-kuoi (left) during the press conference to announce his retirement on March 16, 2018. Photo: AP.>

BlackRock is also eligible to vote, said Zoey Zhou, a credit research analyst at CreditSights, adding that a 15 per cent shortfall "is not hard" to overcome, "given the potential of shareholder rewards from the transaction."

The March 4 proposal to sell Hutchison's interest in 199 berths in 43 ports spread over 23 countries is estimated to generate US$19 billion of windfall for the company. That translates to HK$25 (US$3.22) per share, or almost 65 per cent of Hutchison's March 4 closing price before the company unveiled its deal.

Larry Fink, Chairman and CEO of BlackRock, during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) on April 14, 2023. Photo: Reuters alt=Larry Fink, Chairman and CEO of BlackRock, during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) on April 14, 2023. Photo: Reuters>

Its shares have since soared by as much as 37 per cent in intraday trading, as investors piled into Hutchison's stock to be eligible for a bonus payment that could come from the US$19 billion in cash.

Sandy Li, a decade-long minority shareholder of Hutchison, said she expects the company to "deliver a big bonus", and plans to "vote to approve" Hutchison's sale.

The bonus "will drive the share price to go further up", she said. "I will be disappointed if the company does not proceed with the deal, or if the major shareholders vote it down."

The deal is not without controversy. Ta Kung Pao, a state-owned Chinese language newspaper in Hong Kong, published an op-ed column that lambasted the deal, calling it a "betrayal" of all Chinese people because of its exit from an industry that carries 80 per cent of the world's commerce. The op-ed was republished by Beijing's top representative office in Hong Kong, in a less-than-subtle sign to Hutchison.

For now, Hutchison is keeping silent amid the brewing controversy. Its annual results statement this week did not address the sales proposal. That leaves shareholders with Hutchison's annual general meeting on May 22 as the first opportunity to ask executives about the deal. A special shareholders' meeting to approve the deal has yet to be scheduled.

"For minority shareholders, the proposed transaction is very good news as they can cash in and may receive special dividends from the company upon completion of the deals," said Kenny Ng Lai-yin, a strategist at Everbright Securities International. "The minority shareholders are highly likely to vote in favour of the deal."

A definitive deal for the Panama ports is expected to be signed on or before April 2, which is the key controversy of the deal because the two Panama Canal ports had become a flashpoint in US President Donald Trump's campaign to wrest control of the waterway from his perception of Chinese control.

The US president falsely claimed that China "operates" the Panama Canal - even though Panama is a sovereign country, while Hutchison is a Hong Kong-listed company - and has threatened to take control of the waterway.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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