CK Hutchison Holdings Ltd., founded by billionaire Li Ka-shing, commenced international arbitration against Panama seeking more than $1.5 billion over the loss of its Balboa and Cristobal terminal concessions. The company says Panama breached an investment protection treaty through 2025 and 2026 measures that ended in the concessions' termination and state takeover. CK Hutchison's board said it "strongly disagrees" and warned shareholders and potential investors to exercise caution when trading its securities.
The claim adds to a flurry of litigation: unit Panama Ports Company earlier sought at least $2 billion in separate arbitration, and is also pursuing arbitration in London against A.P. Moller-Maersk A/S over the facilities. The two terminals had been part of a planned $19 billion sale of 43 ports, but account for only about 4% of that deal's value. CK Hutchison shares rose as much as 2.4% in Hong Kong on Thursday.