HONG KONG (Reuters) -Shares of CK Hutchison <0001.HK> fell as much as 4.7% on Monday after China state media criticised the Hong Kong conglomerate’s Panama port deal and sources said the deal, which was expected to be signed on April 2, would be delayed.
Chinese state media attacked CK Hutchison’s plan to sell its ports near the Panama Canal to a group led by BlackRock, in a social media post on Saturday that was later taken down.
Reuters reported on Friday CK Hutchison had delayed part of the sale, although sources said the deal has not been called off.
CK Hutchison shares recovered some lost ground in early trade, and were down 3% to HK$43.8. Hong Kong’s Hang Seng Index was down 0.3% in early trade Monday.
CK Hutchison has faced an increasing barrage of criticism from China on its decision to sell most of its $22.8 billion ports business to the U.S.-led group.
The sale is expected to garner the firm more than $19 billion in cash.
Chinese authorities have reacted negatively to the sale plans, while the deal was hailed by U.S. President Donald Trump who said he wants to retake control of the strategic waterway.
China’s market regulator said on Friday it would carry out an antitrust review on the Panama port deal in accordance with a law protecting fair competition to safeguard the public interest.
Definitive documentation for the two port operations near the Panama Canal was expected to be signed by April 2, according to the sale announcement on March 4.
A social media account linked to state broadcaster CCTV on Saturday said China had significant national interests in the transaction and the sale was “tantamount to handing a knife to an opponent”. The post was deleted shortly after it was made public.
Separately, CK Hutchison said on Monday it had not made any decision on its global telecommunications business, in response to media reports about a potential spin-off listing of the assets.
The company has started preparations to spin off its global telecommunication assets and list the business in London, Reuters reported on Friday, citing sources.
(Reporting by Hong Kong newsroom; writing by Scott Murdoch. Editing by Anne Marie Roantree, Muralikumar Anantharaman and Gerry Doyle)
