BlackRock Inc., Global Infrastructure Partners, and Terminal Investment Limited (collectively known as the BlackRock-TIL Consortium) have issued a press release regarding specific ports owned and operated by Hutchison Port Holdings (HPH).
The announcement states that the BlackRock-TIL Consortium will acquire HPH’s 90% interest in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama.
Additionally, they will acquire CK Hutchison’s 80% effective and controlling interest in all subsidiary and associated companies that own, operate, and develop a total of 43 ports comprising 199 berths across 23 countries.
Speaking on behalf of BlackRock, Chairman and Chief Executive Officer Larry Fink stated that the agreement highlights the combined platform of BlackRock and Global Infrastructure Partners (GIP), demonstrating their ability to deliver unique investment solutions for clients.
Fink emphasized that world-class ports play a vital role in facilitating global growth and are the preferred choice for partners seeking patient, long-term capital investment.
Representing GIP, which is part of BlackRock, GIP Chairman and CEO Adebayo Ogunlesi expressed enthusiasm for partnering with Terminal Investment Limited (TiL) and MSC, organizations with whom they have a longstanding and productive relationship, to make an offer for specific interests in the ports owned and operated by Hutchison Ports Holdings.
According to a Premium Times Nigeria profile, Ogunlesi founded the private equity firm Global Infrastructure Partners (GIP), a joint venture that initially included investors such as Credit Suisse and General Electric.
In 2006, GIP acquired London City Airport, and by 2009, it had purchased the majority share of London Gatwick Airport in a deal valued at £1.455 billion.
Ogunlesi is commonly referred to in the Nigerian media as "The Man Who Bought Gatwick Airport." His private equity firm also owns Edinburgh Airport, acquired in 2012, and Nuovo Trasporto Viaggiatori, which was purchased in 2018.
Ogunlesi has acted as an informal adviser to Nigerian leaders, notably former President Olusegun Obasanjo.
In 2016, President Donald Trump appointed Ogunlesi and other investment and economic experts from companies like Blackstone, Patomark, and General Motors to an advisory council, which was dissolved in 2017.
Born in Lagos, Nigeria, Ogunlesi is also recognized for being featured on Burna Boy's song "Wonderful."
Diego Aponte, Chairman of TiL and President of the MSC Group, speaking on behalf of Terminal Investment Limited, stated their satisfaction in collaborating with BlackRock and GIP, given their shared history of partnership.
Frank Sixt, Co-Managing Director of CK Hutchison, noted that the transaction resulted from a swift, discreet, yet competitive process, during which they received numerous bids and expressions of interest.
After accounting for minority interests and the repayment of specific shareholder loans due from Hutchison Ports Holdings (HPH) to CK Hutchison, the group expects the transaction to yield cash proceeds exceeding US$19 billion.
The transaction is still subject to confirmatory due diligence, the finalization of documentation, standard completion procedures, necessary adjustments and conditions, and compliance by HPH with the rights of minority shareholders under existing agreements related to the Sold HPH Interests.
This acquisition will also include all of HPH’s management resources, operations, terminal operating systems, information technology (IT) systems, and other assets related to the control and operation of those ports.
The transaction, referred to as the PPC Transaction, will proceed once the Government of Panama confirms the proposed terms of the purchase and sale.
The acquisition of HPH's Ports Sale Perimeter will be expedited, subject to the BlackRock-TIL Consortium conducting standard confirmatory due diligence, finalizing the definitive documentation, and obtaining any necessary regulatory approvals.
The agreed aggregate enterprise value for 100% of the HPH Ports Sale Perimeter, including the Panama Ports, is US$22.8 billion.
The definitive documentation for the PPC Transaction is expected to be signed on or before April 2, 2025.