Panama government forcibly takes over operation of two ports under its jurisdiction. Cheung Kong: Strongly Opposes and Plans to Take Legal Action to Protect Group's Rights and Interests

On the evening of February 26, Cheung Kong announced on the Hong Kong Stock Exchange that, following a voluntary announcement issued by the company on February 4, 2026, the Panamanian government gazette published a ruling by the Supreme Court of Panama on January 16, 1997, Law No. 5, originally announced on January 29, 2026, as well as an administrative decree requiring the Panamanian government to occupy the company’s subsidiary, Panama Port Company (PPC), all movable property.

The Panamanian government representatives forcibly entered the terminals operated by PPC at the Balboa and Cristóbal ports and forcibly took over the administrative and operational control of the terminals. According to the company, the franchise rights have been deemed terminated as of February 23, 2026, and PPC has ceased all operations at the two port terminals on the same day.

PPC has received opinions indicating that the ruling, the administrative decree, and the actions taken by the Panamanian government regarding PPC’s operations at the two port terminals are inconsistent with the relevant legal framework and the laws approving the franchise agreement.

The board of directors strongly opposes the ruling, the administrative decree, and the actions taken by Panama. The group continues to work with its legal advisors, reserves all rights, and intends to take all appropriate legal measures to defend its interests, including pursuing further domestic and international legal proceedings. Shareholders and potential investors are advised to exercise caution when buying or selling the company’s shares and/or other securities.

The day before, on the evening of February 25, Cheung Kong Holdings, a family-controlled company under the Li Ka-shing family, along with two other companies—Cheung Kong Infrastructure (01038.HK), Power Assets (00006.HK), and Cheung Kong Property (01113.HK)—jointly announced that they would sell their 100% stake in UK Power Networks, the largest distribution company in the UK, to the French utility giant Engie for approximately HKD 110.75 billion (about GBP 10.5 billion). The three companies currently hold 40%, 40%, and 20% of the target respectively.

This sale price of GBP 10.5 billion is one of the largest energy transactions in the UK in recent years, nearly doubling the purchase price of UK power assets by the Li Ka-shing family, who acquired them from EDF Energy in 2010 for GBP 5.8 billion.

Notably, this is not the first time Cheung Kong Holdings has attempted to sell UK Power Networks. In March 2022, a consortium led by KKR and Macquarie Group offered GBP 15 billion, but the deal fell through due to a last-minute bid increase by the Li Ka-shing family before signing the agreement.

(Source: Shenzhen Business Daily · Read Creative)