(Yicai) July 28 -- CK Hutchison Holdings said the Hong Kong conglomerate plans to add a “major” Chinese mainland investor to the previously BlackRock‑led consortium buying its USD22.8 billion global port assets, aiming to secure Chinese regulatory approval and ease geopolitical concerns.

CK Hutchison, controlled by Hong Kong tycoon Li Ka-shing, “remains in discussions with consortium members with a view to inviting major strategic investor from the PRC to join as a significant member of the consortium,” it said, referring to the People’s Republic of China.

Chinese state-owned shipping conglomerate Cosco Shipping Group is poised to join the consortium as a buyer, the Wall Street Journal reported earlier this month.

Under pressure from US President Donald Trump, CK Hutchison announced the sale of its global interests in 43 ports in March, including a 90 percent stake in the Panama Ports Company, to a group led by BlackRock and Switzerland’s Mediterranean Shipping Company. That deal is expected to generate over USD19 billion in cash proceeds for CK Hutchison.

Shares of CK Hutchison [HKG: 0001] closed 0.8 percent lower at HKD53 (USD6.75) each in Hong Kong today. The stock has gained 38 percent since the end of last year.

The period of exclusive negotiations between CK Hutchison and the consortium has now expired, and the seller is seeking to forge a new arrangement with the buyer based on the above‑mentioned discussions, it added.

CK Hutchison emphasized that it will not proceed with any deals that lacks approval from all relevant authorities.

Last year, CK Hutchison’s net profit fell 27 percent to HKD17.1 billion (USD2.2 billion) last year, while revenue rose 3.3 percent to HKD476.7 billion (USD60.7 billion), its annual earnings report showed. Ports and related services income grew 11 percent to HKD45.3 billion

Editor: Tom Litting