China Merchant Holdings acqiures more stake in Sri Lanka's Colombo port

25 January 2012: China Merchant Holdings (International), a Hong Kong listed Chinese state firm, is to up its stake in a container terminal venture at Sri Lanka's Colombo port by 30 percent to 85 percent with the exit of a private consortium partner. Sri Lanka's listed Aitken Spence group had received approval from Sri Lanka Ports Authority, which gave the terminal operation concession and the island's investment promotion agency to sell its stake to China Merchants. Sri Lanka Ports Authority also has a 15 percent stake in Colombo International Container Terminals, the concession holder.

Aitken Spence pulled out after a loan promised from China Development Bank for the project did not come through and other consortium partners were asked to loan the money and put in extra equity by China Merchants.

Source: Lankabusinessonline